Banking service that will let you pay plumber's bill by calling his mobile

By Stephen Womack

PUBLISHED: 04:55 EST, 20 January 2013 | UPDATED: 04:55 EST, 20 January 2013

A simple service to turn your mobile phone into an extension of your bank account has come a step closer.

Eight banks and building societies have committed to launching the new mobile payment service in spring 2014.

The big five banks Barclays, HSBC, Lloyds, Royal Bank of Scotland and Santander are all backing the initiative, which is co-ordinated by the Payments Council.

Pay as you go: The new system prevents the need to hand over bank account details.

The aim is to link your bank account to your mobile phone number through a massive database. This would allow you to send money to a friend or relative, or to pay a babysitter or plumber, for example, simply by knowing their mobile phone number.

There would be no need to remember or to disclose your sort code or bank account number. Instead, the person paying would simply enter your number and the amount to be paid on their phone.

Adrian Kamellard, chief executive of the Payments Council, says: The service will offer a simple, secure way to split a bill for dinner, receive money from a friend or to pay a tradesman without needing to remember or share account details.

Joining will not be compulsory. Before the service is up and running, banks will invite customers to register and to say which account they want to link their phone to.

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Banking service that will let you pay plumber's bill by calling his mobile