The service enables people to transfer money by using mobile phone numbers and can be used by customers of the Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC, Lloyds Bank, Santander, TSB and Danske Bank.
By the end of the year, a total of 40 million people will be able to access Paym, when other financial institutions such as Clydesdale Bank, first direct, Isle of Man Bank, NatWest, Royal Bank of Scotland and Yorkshire Bank join the project.
By that point, Paym is set to be available on more than nine out of 10 current accounts.
The service will allow people to transfer cash payments on their mobile by using the recipients phone number. It will be integrated into their existing mobile banking or payment app.
To make a payment, a user can either select the contact they wish to pay from their phone or key in their mobile number.
The app will ask them to confirm the name of the recipient and the amount before the money is sent.
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