Let's do the Maths on UK PAYM – it today will only be used by a maximum of 20% of consumers

So we have PAYM a great new service that everyone can use to send money to each other using their phone, as we are told that: 30m customers of banks including Barclays, Bank of Scotland, Halifax, HSBC, Lloyds, Santander or TSB will now be able to use the service, as soon as they have registered their mobile number with their bank, writes David Parker

So we have PAYM a great new service that everyone can use to send money to each other using their phone, as we are told that: 30m customers of banks including Barclays, Bank of Scotland, Halifax, HSBC, Lloyds, Santander or TSB will now be able to use the service, as soon as they have registered their mobile number with their bank, writes David Parker

That is fine in theory, except that:

Consumer Intelligence’s survey of 2051 current account holders shows that 25% intend to use the service, rising to 39% among 18 to 34 year olds. Another 28% are undecided.

So lets be generous and take the 25% and the 28% to make 53% might use the service that gives us: 15.9m potential users.

You have to download the app, okay so that is circa 70% of the population that has a smartphone so that takes us down to say 11.3m customers.

Are, but you have to have the right phone, no Blackberry or Windows (as least on Barclays) only Iphone or Android who command together a market share of circa 85% so that leaves us with 9.46m customers.

Okay so with circa 48m adults in the UK in total that means that based on those that say they might and they will consider using the service and those that can actually access it we are saying that PAYM could reach today a maximum of 20% of the UK population today. Not quite the national solution it is touted, certainly a good start. But we need to be reralistic.

Over 5 million – mainly customers of the Nationwide Building Society – will not be able to use the system fully until 2015. Customers of RBS, NatWest, Ulster Bank and First Direct, will be able to join the scheme later this year, group has over 13m current account holders, and First Direct has 1.2m.