Paym- connecting young people to money

Splitting the restaurant bill has become as easy as sending a text for the 500,000 registered users of the Payments Council's recently launched payment service, Paym. Simon Cadbury explores why this new payment system will be a hit with young people, writes Jerry Mulle

Splitting the restaurant bill has become as easy as sending a text for the 500,000 registered users of the Payments Council’s recently launched payment service, Paym. Simon Cadbury explores why this new payment system will be a hit with young people, writes Jerry Mulle

For the first time, people in the UK can make payments from their mobile phones by simply using the recipient’s mobile phone number, without the need to enter a sortcode or account number. This payment method will be particularly popular with young people, as over four million 18-30 year olds were interested in the service before it even launched, according to our research.

Rob Bamforth, analyst at IT research firm Quocirca, believes consumers are more likely to use a payment option if it causes them less hassle. He explained that consumers don’t tolerate delays as the aim of moving to these systems is to "streamline and speed up" the process. This is definitely the case with younger consumers. According to our research, over a quarter (26%) say their digital bank is not intuitive enough, while 39% are frustrated they need to use a card reader to set up a new payee.

By allowing users to make a transfer within seconds without the need for account details, Paym provides this simple and intuitive method these young customers are demanding.

It’s clear that young consumers continue to embrace any technology that makes managing their finances easier, while they are shunning traditional forms of banking. Figures from Vouchercloud reveal one in six 18-30 year olds have never visited their own financial service provider. By providing their young customers with services like Paym and integrating offerings onto platforms which fit into their lifestyles, financial services providers now have another weapon in their arsenal to retain younger customers.