More than a million bank customers have registered for a new mobile service that allows them to make payments using a mobile phone number alone.
The Paym initiative, which launched this April, is open to 30m current account holders at participating banks and building societies.
In its first 100 days, around £6.5m was transferred using the free service, which has been designed to make paying friends and family members more convenient.
After registering their mobile number to their current account, users can transfer money to contacts in their phone’s address book, providing the recipient has also signed up to Paym. Unlike online banking, they do not need to enter account numbers and sort codes.
From later this year, customers of Clydesdale Bank, FirstDirect, Isle of Man Bank, the Royal Bank of Scotland group, and Yorkshire Bank will also be able to sign up to Paym, extending the franchise to nine-in-ten UK current accounts.
Another smartphone app, called Zapp, will allow bank customers to pay for goods and services in-store and online using their phones – a feature not enabled by Paym - after its launch this autumn.
Get alerts on Personal Finance when a new story is published