People who use mobile banking are four times more likely to be happy sharing money with friends and family, according to new research from Paym, the payment tool that uses a mobile number.
Marking the first anniversary of its launch on 29th April 2014, Paym has already processed nearly £44 million of payments. Paym is available through 16 banks and building societies covering more than 90% of UK current accounts, with 2.25 million customers’ mobile numbers now registered to receive payments through the service.
The Paym service is growing further still – Nationwide Building Society will join in May.
Attitudes to sharing money with friends and family are shifting. At launch, Paym revealed reluctance among UK consumers to self-identify as a borrower of money from others, with only one in eight (12%) people willing to do so. This figure has increased 33% in the last year, with one in six (16%) now happy to say they use IOUs with friends and family as an easy way to share costs.
The most recent survey also revealed that users of mobile payment services are far more open to sharing money with others – 58% are happy to, compared with 15% of all adults.
The growth of Paym and increased willingness to share money with friends and family comes against the backdrop of the rise of the sharing economy. Internet-based companies enabling services such as car sharing, house rental and even pet sharing are starting to take off – a report for innovation charity Nesta1 found 25% of UK adults used internet technologies to share assets/resources over the last year.
Craig Tillotson, Managing Director of Paym explains: “Advances in technology are making sharing easier than ever – Paym means you can pay back friends and family using just their mobile number. We’re using our mobiles more than ever – and not just for phone calls. When you add this trend to the wider growth in the sharing economy, mobile payments look set to be a real growth area over coming years.”
Paym found 18 to 24-year-olds are most likely to borrow and lend money among friends and family as a regular part of managing their money. They transfer money every few weeks for drinks (51%), food (40%) or transport costs (31%). Over half (51%) of workers and colleagues collate IOUs purchasing coffees and lunch for each other.
There is an agreed etiquette about sharing money, with £100 deemed the largest amount most people feel comfortable sharing. Three quarters (74%) say that the reason for borrowing money should always be explained and they also have the right to turn down a request for money if they do not approve of what it is for (77%).