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Smartphone service lets users pay via mobile number

2 April 2014 Last updated at 18:18 BST

Banking customers can now register to use a new smartphone service which will allow them to pay recipients using their phone number.

"Paym" will be integrated into existing mobile banking apps and allow anyone to transfer money without asking for an account number or sort code.

Neil Aitken, from the Payments Council, assured BBC Radio 5 live's Wake Up to Money that the system would be "secure" and password protected.

"The only thing that people would be able to do if they got your mobile number is pay you," he said.