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More innovation in the payment market is good news – but could make budgeting harder for consumers

10 March 2014

Gocompare.com’s banking spokesperson, Matt Sanders, comments on the announcement by the Payments Council of Paym – a new, secure way that consumers will be able to pay using their mobile number.

Matt said: “Any secure and reliable innovation in the payment market is great news for consumers. More and more people are using banking apps and this advance into mobile payments will lessen the dependence on traditional banking methods and will serve a new, tech savvy generation of banking customers.

“It’s also great to see so many high street banks signing up at launch, which means that the new system will be able to be used by lots of consumers and will integrate quicker into the banking market.”

Matt added: “But I do fear that it will make it a lot easier for people to overspend. Taking away the physical need to have a debit or credit card or visit a cashpoint, means that people could lose touch with what they are spending and when.

“Most of us carry our smartphone around with us everywhere and so the dependence on needing cash or having to have your card with you to spend will be diminished. It will be interesting to see how many people make use of the new service when it is launched in April, and how, if at all, it affects spending habits.”

Gocompare.com has also produced an infographic guide to digital banking, including tips on how to stay safe when banking on your mobile or smart device: http://www.gocompare.com/money/digital-banking-fraud/.