A NEW mobile payment service with the potential to eventually link up every current account in the country with a phone number has been launched, making it available for use by 30 million people initially.

The new Paym service to enable more people to transfer money just by using mobile phone numbers can be used by customers of Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC, Lloyds Bank, Santander, TSB and Danske Bank.

By the end of the year, a total of 40 million people will be able to access Paym, when Clydesdale Bank, first direct, Isle of Man Bank, NatWest, Royal Bank of Scotland and Yorkshire Bank come on board. By that point, Paym will be available on more than nine out of 10 current accounts. Paym, which is pronounced as "pay em", has been described as the first industry-wide collaboration in the UK which could potentially link up every bank account with a mobile number.

Many people will be able to transfer at least £250 a day under the scheme if they want.