Fears for Cash as We Remember Paym and Banking Evolution in last 12 Years
Published / Last Updated on 06/03/2026
Paym (pronounced "pay 'em") was a UK-based mobile payment service launched 29th April 2014 that allowed users to securely send and receive money using only a mobile phone number linked to a bank account, rather than a sort code and account number. It operated within major banking apps and was designed for quick, person-to-person (P2P) transfers.
Key Paym Details:
- Functionality: It allowed users to register their mobile number with their bank account to act as a "proxy" or alias.
- Availability: At its peak, it was supported by 15 major UK banks and building societies, reaching over 90% of UK current accounts.
- Closure: Due to low, declining transaction volumes and the rise of other mobile payment methods, Paym officially closed on March 7, 2023
Paym Superseded
A shift has occurred over the last 12 years to digital, online, and specialized payment services with many payment options having replaced or supplemented traditional, older methods such as "Paym" or basic cash or card transaction.
Contactless using our cards to ‘tap n go’ is extremely popular as are the following:
1. Digital & Mobile Wallets
These allow users to store multiple payment methods (cards, bank accounts) for contactless or online, secure, one-click payments.
- Apple Pay
- Google Pay
- PayPal
- Wise
- Revolut
- Venmo (US accounts)
- Alipay (China/Far East)
2. Buy Now, Pay Later (BNPL) & Financing
These services allow consumers to split payments or defer them, increasingly replacing traditional credit cards for online retail.
- Klarna
- Clearpay
- PayPal Pay in 3
- Zilch
- Laybuy
- Payl8r
3. Open Banking & Bank Transfers
These methods facilitate direct, secure payments from a user’s bank account, often used to avoid card fees.
- Pay by Bank app
- Direct Debit
- Trustly
We fear for cash
Pay with a £20 note and the retailer has £20 to spend on staff, suppliers, and bills. Pay £20 by card and the retailer may get £19.50 (after bank merchant charges) to spend on staff, suppliers and bills. Take that £19.50 through another 10 cycles and the original £20 may now be worth £16 and that could be in a day or a week of transactions. Compare this to a £20 note exchanging hands 10 times. It is still worth £20.
Banks are making money by you using card and payment services, it is why we prefer old school cash and direct bank transfer to protect the value of money, but we are fighting a losing battle.
