The new Paym transfer system is set to make it easier to send money to friends and family via your mobile phone.

All you need is their mobile number and you can send them money - you don't even need their account or sort code.

What is Paym?

Mobile banking apps and mobile-to-mobile payments systems have been dabbled with by some banks in the past, but the Paym bank transfer service intends to make them far more mainstream.

By simply using the mobile phone number of the person you need to send money to, you can make an instant Paym bank transfer into their current account.

As long as they've registered for Paym too this can be completed without having their bank details (account number or sort code) to hand. You just need to enter their mobile number and confirm their name.

You can send up to 250 a day via Paym, although some banks will let you send more.

So if a friend owes you money and wants to pay you, or you need to repay or lend a family member some cash, this can be done simply with the use of a few digits.

Why Paym makes banking easier

One of the main advantages of the online Paym bank transfer service is speed.

Rather than waiting for days for a cheque to clear and the money to enter your account, or making time to get to a bank, you can type in a phone number and send money in minutes.

The Paym mobile phone banking platform is also convenient as you will have many of the numbers you need already saved, and your family and friends will have yours so you won't have to swap bank details.

How to start using Paym

Not all banks are offering Paym mobile payments yet so you'll need to check that yours is or switch to a bank offering Paym functionality.

Before you can start transferring cash using the Paym mobile payments system, you'll need to link your mobile phone number to the current account you want to make Paym payments to and from - you'll be able to do this on their website.

You can only link one account to your mobile phone number so choose carefully.

Paym works via mobile banking or your banking app and while you can still use it to receive payments if you don't have a smartphone, you won't be able to make Paym payments.

Any smartphone that can support your bank's app will be capable of supporting Paym, but if you're in any doubt check your bank's website to find out more.

How safe is Paym?

Paym creators insist that their new system is just as safe as banking online using your computer and that you don't need to download security software because it works through your bank's existing app or mobile website. However, there are some steps you can take to protect your details.

As the mobile-to-mobile payment service runs using your bank's app or mobile banking you must ensure passwords you have set-up are secure and that you alone know the details.

You should make sure your mobile phone screen locks when it's not being used and, if you lose your smartphone or it's stolen, tell the bank straight away so they can disable Paym functionality as extra protection.

You'll also need to extra careful you type in the mobile number correctly so you don't accidentally pay the wrong person, although you will need to confirm the recipient's name before you complete a Paym transfer.

Most of the banks offering Paym aren't signed up to the new Payment Association code that sets out how they'll help if you pay money into the wrong account so you need to be certain you've got the right details.

Read Is banking on your smart phone safe? for more tips.

There's more to current accounts than Paym

You might be tempted to pick a current account based solely on the fact that it offers Paym, but picking which account to keep your money in needs greater thought.

As well as comparing Paym mobile phone banking features, you should think about what current account's best for you based on your circumstances.

Are you always in credit or could you do with having an overdraft? Could you earn more on savings using a high interest current account?

These are all important considerations that you should think about before making your decision. Take a look at the best current account deals or read our guide How to choose the best current account for more information.