Transfer money from 2014 without sort codes and account numbers, as easy as texting
Behold! There will soon be a new way of transferring money which sounds stupidly easy. The Payments Council have announced that eight financial institutions (or, 90% of all accounts in the UK) have signed up to the scheme which allows consumers to make payments using a mobile phone number. And you won't need to know any account details. The banks involved are Barclays, Cumberland Building Society, Danske Bank, HSBC, Lloyds Banking Group, Metro Bank, RBS and Santander.
Fraudsters' ears have pricked up, no question.
The Payments Council have said that a passcode will be required as a minimum and banks will be able to disable an account if they suspect foul play.
Adrian Kamellard, chief executive of the Payments Council, said: “This new service will offer a simple, secure way to split a bill for dinner, receive money from a friend or pay a tradesman without needing to remember or share account details.”
The Payments Council are heralding this service as the first of its kind and that it is the first to link accounts from every bank in the UK, potentially.
There's a lot of admin to be done to get this service up-and-running, and it is thought that spring 2014 will be the earliest we see it.