Paym statistical updateUsage and Registration

February2016

Number of payments Value of payments

Commentary:

More money was sent using Paym in the last six months of 2015 than in the previous 12 months (£76,248,526 was sent using Paym from 1 July - 31 December 2015, compared to £67,248,413 sent from 1 July 2014 - 30 June 2015 - an average increase of 134%). The number of payments sent is almost doubling every six months – with 1.46m payments sent in the second half of 2015, compared to 774,628 in the first six months.

Source: Paym transaction data

Source: Paym transaction and registration data, correct on 31st December 2015.

Commentary:

The number of registrations continues to increase strongly, with 624,420 people registering their phone number with their bank or building society in the second half of 2015. The average transaction value of a Paym payment dipped below £50 for the first time in the last three months of 2015, with £49.48 being sent on average, reflecting the increased growth rate in the number of transactions.

The seventeen participating banks and building societies will continue to promote Paym to their customers during 2016, with awareness campaigns stretching across mobile banking apps, websites and in branch.

What’s next?

Total number of Paym registrations = 3,239,379

Paym payments sent in 2015 = 2,239,136

Value of Paym payments sent in 2015 = £120,255,343

Average transaction value:

£58.

35

£55.

48

£55.

53

£49

.48

£45

£50

£55

£60

Q1 2015 Q2 2015 Q3 2015 Q4 2015

£20

,953

,572

£23,

053

,245

£34,

733,

985

£41,5

14,5

41

£0

£10

£20

£30

£40

£50

Q1 2015 Q2 2015 Q3 2015 Q4 2015

359

,127

415,

501

625

,49

7

839

,011

0

200,000

400,000

600,000

800,000

1,000,000

Q1 2015 Q2 2015 Q3 2015 Q4 2015

Commentary:

Petrol money and splitting bills, IOUs and other household costs remain amongst the most popular reasons to use Paym, with almost a quarter of users saying they have used Paym for one of these reasons. For the first time, contributing to a group present was the single most popular reason for making a Paym payment - perhaps indicating the growing popularity of buying Christmas gifts in this way.

The popularity of using Paym to pay a small business is increasing – with 13% of people who use Paym having paid in this way.

What’s it for?

23% Petrol money22% Helping with bills

22% Helping with bills22% Paying back an IOU

19% Paying back an IOU19% Household costs

18% Household costs19% Lunch or dinner

14% Lunch or dinner/a drink

Jun 2015 Jan 2016

25% Petrol money 23% Buying a group present

13% Paying a small business

Commentary:

Understanding of the Paym service is increasing, with a greater number of customers recognising the value of key features of the service, such as ‘not having to give account details out’ or that it is ‘easier to use a mobile number than account number/ sort code’. The findings could indicate a growing preference for mobile banking, compared to using cash. The vast majority (68%) of Paym payments are sent by men. 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: Who users are sending money to:

Source: TNS Online survey

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

Jun 2015 Jan 2016

7% 4%65+ years

Jun 2015Age Jan 2016

19% 19% 19% Parents 19% Parents35 - 44 years

24% Partner/spouse 25% Partner/spouse16 - 24 years 27% 24%

19% Child 21% Close friend25 - 34 years 28% 43%

12% 6% 19% Close friend 14% Child45 - 54 years

7% 4% 16% Brother/sister 14% Brother/sister55 - 64 years

Consumer Opinion

Source: TNS online survey

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

28%

24%

24%

24%

22%

Not having to give account details out to others

Not having to carry cash around

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

Fewer trips to the ATM

It is easier to receive payments

Jan 2015

Jan 2016

34%

28%

27%

26%

25%

25%

24%

21%

Fewer trips to the ATM

Not having to give account details out to others

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

Not having to carry cash around

It is easier to receive payments

It links across di�erent banks

The majority of payments are processed in minutes

The name of the person you want to pay is confirmed

Who is using Paym?

Gender

68% 32%

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

56% 44%

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

Sent Paym payment Registered to receive

Benefits