February 2016

Paym statistical update Usage and Registration

Number of payments Value of payments 1

1,000,000 £50 839,011 800,000 £41,514,54

£40 £34,733,985 625,497 600,000 £30 £23,053,245 £20,953,572 415,501 400,000 359,127 £20 200,000 £10 0 £0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Source: Paym transaction data 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.

Total number of Paym registrations = 3,239,379

Paym payments sent in 2015 = 2,239,136 Average transaction value:

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

£60 £58.35 Commentary: £55.48

£55.53 £55 The number of registrations continues to increase strongly, with

624,420 people registering their phone number with their or £49.48 £50 in the second half of 2015. The average transaction value of a Paym payment dipped below £50 for the first time in the £45 last three months of 2015, with £49.48 being sent on average, Q1 2015 Q2 2015 Q3 2015 Q4 2015 reflecting the increased growth rate in the number of transactions.

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

What’s next?

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

Benefits Jan 2016 34% Not having to give account details out to others Jan 2015 28% Easier to use a mobile number rather than 28% Not having to give account details out to others account number/ 27% Fewer trips to the ATM 24% Not having to carry cash around 26% Not having to carry cash around 24% Easier to use a mobile number rather than account number/ sort code 25% It is easier to receive payments 24% Fewer trips to the ATM 25% It links across dierent banks

22% It is easier to receive payments 24% The majority of payments are processed in minutes

Source: TNS online survey 21% The name of the person you want to pay is confirmed Base: All who have a bank account with a provider that oers Paym.

Who is using Paym? Gender Sent Paym payment Registered to receive

68% 32% 56% 44%

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

Age of senders: Who users are sending money to:

Age Jun 2015 Jan 2016 Jun 2015 Jan 2016

16 - 24 years 27% 24% 24% Partner/spouse 25% Partner/spouse

25 - 34 years 28% 43% 19% Child 21% Close friend

35 - 44 years 19% 19% 19% Parents 19% Parents

45 - 54 years 12% 6% 19% Close friend 14% Child

55 - 64 years 7% 4% 16% Brother/sister 14% Brother/sister

Source: TNS Online survey 65+ years 7% 4% Base: All respondents who have a bank account and have registered for Paym 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 dierence 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.

What’s it for? Jun 2015 Jan 2016 Commentary:

25% Petrol money 23% Buying a group present Petrol money and splitting bills, IOUs and other household costs remain amongst the most popular reasons to use Paym, with 22% Helping with bills 23% Petrol money almost a quarter of users saying they have used Paym for one of these reasons. For the first time, contributing to a group present 22% Paying back an IOU 22% Helping with bills was the single most popular reason for making a Paym payment - 19% Household costs 19% Paying back an IOU perhaps indicating the growing popularity of buying Christmas gifts in this way. 19% Lunch or dinner 18% Household costs 14% Lunch or dinner/a drink The popularity of using Paym to pay a small business is increasing – with 13% of people who use Paym having paid in this way. 13% Paying a small business