HSBC launches Paym for business

HSBC has launched Paym capabilities to its business customers this week, enabling them to receive payments using mobile phone numbers.

The capability was introduced to the more than 600,000 firms using HSBC’s Business Internet Banking service.

“Paym offers a convenient way for businesses, from local shops to tradespeople, to get paid by their customers – and HSBC is offering them 50 different mobile numbers to register to their accounts,” said James Cliffe, HSBC’s head of business banking.

Once the mobile numbers have been registered online, employees can use Paym to receive payments from customers into business current accounts, regardless of the customer’s bank or payment provider.

The Payments Council launched the consumer Paym service this year, which allows subscribers to transfer money to a recipient’s bank account using only their mobile phone number.

The mobile transaction service was responsible for over £6.5m of transactions in its first 100 days, and one million people registered for the mobile wallet in the first 100 days of its release in April 2014.

Several banks, including Clydesdale Bank, Isle of Man Bank, NatWest, Royal Bank of Scotland, Ulster Bank and Yorkshire Bank recently joined the Paym scheme, bringing the total number of participating firms to more than 15.

Isle of Man Bank, NatWest, RBS and Ulster Bank customers can now receive Paym payments, and will be able to send them in mid-2015.

One of HSBC’s small customers, Wayne Fennell, a plasterer in Hertfordshire, explained he plans to sign up to use the Paym for business service, as small businesses need to be aware of available funds.

"I do various sizes of job, ranging from large to smaller quotes, which means keeping an eye on cashflow is important," he said. "I'll be signing up to receive Paym payments. Anything that makes it easier and quicker for my customers to pay is very welcome indeed."

Currently, businesses can only use Paym to receive payments from customers, but allowing small businesses to pay others using the feature is being reviewed.