Paym, a mobile payment service introduced by Pay.UK along with 15 banks and building societies in the UK, is set to shut down its operations on 7 March next year.
The move comes as the service saw reduced number of people signing up to use its platform in the last three years. This has minimised the volume of transactions made through Paym.
New enrolment for the service decreased by 10% in 2021 and 14% in 2022, respectively. The volume of transactions carried out through Paym each month have fallen from 867,000 in 2020 to 668,000 this year.
In addition, change in consumers’ behaviour in the UK has led to the adoption of new methods of mobile payment and availability of faster payments via online banking.
This has also badly impacted Paym, which was launched in 2014.
According to Pay.UK, shutting down of Paym will be undertaken keeping in mind the requirements of the existing users of the service.
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The operator and standards body for the UK’s retail interbank payment systems will work together with banks and building societies to reduce disruption during the closure of Paym.
Pay.UK chief payments officer Dougie Belmore said: “Paym has been an important service for nearly nine years.
“But the emergence of new products and services, driven by the UK’s world-leading payments sector, means it is time to make the move to faster, and better systems for consumers and businesses.
“Any Paym customers with concerns about the change should speak to their bank or building society.”
Currently, Paym has approximately 5.8 million registered users, of whom nearly 500,000 are its regular users.