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Paym has the the potential to eventually link up every current account in the country with a phone number so transferring cash is as easy as texting (pictured)

Transferring money to friends and family has got considerably easier since the days when writing cheques was the only option, but until now it still required knowledge of people's bank details.

A new mobile payment service is set to make life easier as it has the potential to eventually link up every current account in the country with a phone number.

The Paym service has just launched and is initially available for use by 30million people in the UK.

It enables people to transfer money by using mobile phone numbers and can be used by customers of the Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC, Lloyds Bank, Santander, TSB and Danske Bank.

By the end of the year, a total of 40 million people will be able to access Paym, when Clydesdale Bank, first direct, Isle of Man Bank, NatWest, Royal Bank of Scotland and Yorkshire Bank come on board.

By that point, Paym will be available on more than nine out of 10 current accounts.

Paym, which is pronounced as 'pay em', has been described as the first industry-wide collaboration in the UK, which could potentially link up every bank account with a mobile number.

Although it is anticipated that many people will use Paym to make small payments to friends and family, they will be able to transfer at least £250 a day under the scheme if they want. Some banks and building societies will have a higher daily limit.

People need to actively register their mobile number alongside a nominated current account in order to receive money into that account through Paym.

The service has just launched and is initially available for use by 30 million people in the UK. It enables people to transfer money just by using mobile phone numbers and can be used by customers of the Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC (pictured) Lloyds Bank, Santander, TSB and Danske Bank

By the end of last week, more than 300,000 people had already registered to be able to use the service.

People do not have to register for Paym in order to send money through the service, although their bank or building society does need to be taking part in the scheme in order for them to do this.

The service will allow people to transfer cash payments on their mobile by using the recipient's phone number rather than needing to know their bank account number and sort code. It will be integrated into their existing mobile banking or payment app.

To make a payment, a user can either select the contact they wish to pay from their phone or key in their mobile number.

The app will ask them to confirm the name of the recipient and the amount before the money is sent.

Adrian Kamellard, chief executive of the Payments Council, which is overseeing the initiative, said: 'Paying someone back just got easier for millions of people. Paym is another safe and easy option to pay friends and family.'

Payments made through the service are made at the same speeds as existing current account, online and mobile payment services.

Easier: The service will allow people to transfer cash payments on their mobile by using the recipient's phone number rather than needing to know their bank account number and sort code. It will be integrated into their existing mobile banking or payment app that can be used on the go (pictured)

More than 94 per cent of adults now own a mobile phone and strong growth in mobile payments technology has already made it easier for people to leave their wallets at home.

Barclays' Pingit app, which launched just before the 2012 Olympic Games, picked up 2.5 million regular users in just 18 months.

Pingit, which is available to both Barclays and non-Barclays customers, also allows people to make payments using just mobile phone numbers.

Another mobile payments scheme called Zapp is set to launch this autumn and is backed by the company behind Link cash machines.

Nationwide Building Society has confirmed its intention to join the Paym scheme in early 2015 while Metro Bank and Ulster Bank are also finalising their launch plans.

Last week, the Payments Council announced that people who accidentally send money to the wrong bank account will be able to get better help in clawing it back by the end of next month.

A new voluntary code will mean that people get quicker and more consistent help from their bank or building society after they have alerted them to a wrong payment, although someone who raises such a claim is not guaranteed they will get their money back.

Popular: More than 94 per cent of adults now own a mobile phone and strong growth in mobile payments technology has already been seen. Barclays' Pingit app, which launched just before the 2012 Olympic Games, picked up 2.5 million regular users in just 18 months A Barclays sign is pictured

David Richards, co-founder of British Big Data firm WANdisco, told MailOnline that banks expect some £1billion of payments to be made using Paym by 2018, with nine out of 10 users using the system.

Some commentators have predicted this will mark the end for cash, cheques and high street banks, he said.