Around one in four bank customers plan to use the new mobile payment service Paym, according to new research from Consumer Intelligence.

The research was conducted through an online survey of 2,051 current account holders aged 18 and over.

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However, 71% of participants surveyed said they are concerned about security and 32% believe their money may go missing through using the service.

Paym mobile payment service launches on 29 April 2014 in the UK and will allow customers to make and receive payments through their smartphone.

Customers will first have to register their mobile number to the relevant current account they wish to make payments from.

Though 25% of consumers surveyed say they intend to use the scheme, this figure increases to 39% among those aged between 18 and 34.

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In contrast, 42% of participants said they prefer traditional payment methods and 39% of participants say they are worried of the consequences should their mobile phone be stolen.

47% of consumers say they will definitely not use Paym and 13% are waiting to see how others get on with the service before they try it themselves.

David Black, a banking specialist at Consumer Intelligence, said: "Consumers can take a while to warm to new banking developments.

"It’s clear that the banking industry has a job to do educate many of them that mobile payments are a safe and consumer-friendly development," he added.

Paym has been backed by financial institutions including Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander and TSB.

 

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