Paym statistical update

September 2016

Commentary: Almost £100m (£99,218,404) was sent using Paym in the first six months of 2016, meaning in excess of £245m has been sent using Paym since the service launched in April 2014.

More than 2 million Paym payments were sent in the first half of 2016, compared to 774,628 in the same period a year earlier, showing 259.22% year-on-year growth in the volume of payments.

Since mid-July, new functionality has been introduced that sends a text message to notify anyone who has not registered their mobile number that someone attempted to pay them using Paym. The messages are to enable anyone who has missed out on receiving a payment, to register to receive payments using just their mobile number in the future.

Usage and Registration

What’s next?The consumer research carried out for this statistical update found that 80% of people who use Paym would recommend it – it is hoped that the SMS service should benefit both the sender and the potential recipient by boosting registrations and consequently increasing the number of successful payments.

Current active Paym registrations = 3,299,907

Value of Paym payments sent in H1 2016 = £99,218,404

New registrations in H1 2016 = 709,419

Commentary: More than 700,000 phone numbers were registered for Paym with one of the seventeen participating banks or building societies in the first half of 2016. Almost 4 million registrations

Source: Paym transaction and registration data

Average transaction value:

£55.53

£49.48 £49.02 £49.48

£45

£50

£55

£60

Q3 2015 Q4 2015 Q1 2016 Q2 2016

(3.95m) have been made since the service launched in April 2014; almost 3.3m (3,299,907) are currently active, once adjusted for registrations that have been moved to another account or deactivated.

The average transaction value of a Paym payment has levelled out at just below £50 with £49.40 being sent on average – this is lower than the £56.92 that was being sent on average a year ago, with the increase in volume pulling the figure down, suggesting payers who have tried Paym are more comfortable using Paym for even more of their day-to-day payments.

Source: Paym transaction data

Value of payments

£34,733,985£41,514,541

£45,900,576£53,317,828

£0

£10

£20

£30

£40

£50

£60

Q3 2015 Q4 2015 Q1 2016 Q2 2016

Number of paymentsNumber of payments

625,497

839,011936,325

1,071,637

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Q3 2015 Q4 2015 Q1 2016 Q2 2016

Commentary:

Squaring up for petrol money was the most popular reason to use the service those surveyed in July 2016, with more than one in five (21%) Paym users sending a payment for this reason. Paym was used less widely for buying group presents in the July survey than the one conducted shortly after christmas in January 2016. More

Commentary:

The gender profile of people who are using Paym to send payments currently seems to be quite stable with men making up 68% of this group, only slightly down from 2015. This is a marked di�erence to the gender split for those who have registered their mobile number to receive payments – this is more even with women making up 44% of registrations.

Age of senders:

65+ years 5%4%

Age Jul 2016Jan 2016

35 - 44 years 27%19%

16 - 24 years 24%24%25 - 34 years 34%43%

45 - 54 years 6%6%4%4%55 - 64 years

Jan 2016

27% Fewer trips to the ATM

34% Not having to give account details out to others

28% Easier to use a mobile number rather than account number/ sort code

26% Not having to carry cash around

25% It is easier to receive payments

25% It links across di�erent banks

24% The majority of payments are processed in minutes

21% The name of the person you want to pay is confirmed

Source: TNS online survey

July 2016

32% Not having to give account details out to others

27% Easier to use a mobile number rather than account number/ sort code

26% Fewer trips to the ATM

25% It links across di�erent banks

20%

24% It is easier to receive payments

24% Not having to carry cash

24% The majority of payments are processed in minutes

Who users are sending money to:

Source: TNS Online survey

Base: All respondents who have a bank account and have registered for Paym

Jul 2016Jan 2016

24% Close friend25% Partner/spouse

17% Parents21% Close friend

15% Brother/sister14% Brother/sister

16% Friend of friend14% Child

17% Partner/spouse19% Parents

19% Cinema, theatre or gig ticket

23% Petrol money

18% Lunch or dinner22% Helping with bills

18% Household costs19% Paying back an IOU

18% Buying a group present18% Household costs

Jul 2016Jan 2016

21% Petrol money23% Buying a group present

14% Lunch or dinner/a drink17% Paying back an IOU

13% Paying a small business15% Paying a small business

Jan 2016

Jul 2016

Gender:

How Paym is being used by consumers

Benefits

65+ years 7%

Age Jul 2016 Gender

35 - 44 years 19%

16 - 24 years 27%25 - 34 years 28%

45 - 54 years 12%7%55 - 64 years

56% 44%

broadly, there seems to be an increasing trend to use the service for payments relating to our social lives – settling up for a cinema, theatre or gig ticket is now the second most popular reason to use Paym, with almost one in five (19%) using Paym for this reason.

Base: All who have a bank account with a provider that o�ers Paym.

0% 20% 40% 60% 80% 100%

69% 31%

68% 32%