HSBC has announced it will give away 27 smartphones as part of a promotion to get people to preregister for peer to peer (P2P) money sending service Paym.

Users of the mobile banking app will be entered into a draw with a chance to win one of the phones when the app is updated to support Paym.

Paym is a UK Payments Council scheme for users to send and receive payments using a mobile number and has the potential to link all current accounts in the UK by mobile number.

The service will become available on HSBC’s mobile banking app on 29 April.

George Charalambous, head of mobile banking UK at HSBC, told RBI: "The UK has not had payment innovation for quite awhile and all the UK banks collaborating to offer a ubiquitous P2P is not something we’ve seen before. Our research suggests customers find this a compelling service and would use it.

"Customers want to be able to send and receive money without having to give out account numbers and sort codes."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Retail Banker International.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The app, currently available on Android and iOS, will receive an automatic update with the new service.

HSBC’s app now sees around one million log-ons each week since its launch in August 2013.

Earlier this year, the bank confirmed it will participate in Zapp, which will allow customers to pay for things online using their mobile banking app. Zapp has plans to roll out in-store mobile payments in 2015.

Charalambous said: "While Paym is separate it uses the same underlying infrastructure. The difference is that Paym is person to person and that Zapp is person to business. There is a clear distinction."

Carl Howard, HSBC UK Head of Digital said: "Customer demand for mobile banking services is growing. People want to do their banking with us when it suits them, whether it’s at home, work, or if they’re out and about.

"We’ve just added a range of new features for our mobile banking app and customers will be able to use Paym when it launches. We welcome this new initiative, which will make paying friends or family even easier."

According to figures from the British Bankers Association (BBA) customers signed up to receive more than 450m text messages such as balance alerts from their banks in 2013. Two thirds of text alerts received by HSBC customers warned that a balance had dropped below a point they set.

HSBC claims that that 72% of all its interactions with customers are now carried over the phone on through the Internet.

UK mobile banking transactions double in a year: BBA research

HSBC launches new mobile banking app in UK