Payumi: new way to collect money from your friends online

Online service Payumi offers a new, easy way to collect cash from your friends. But how does it compare to rivals like the O2 Wallet or Barclay's Pingit?

Tired of friends not paying you back for those Stone Roses reunion gig tickets, that stag or hen weekend in Barcelona or that exclusive spa retreat at Champneys?

Well, new online service Payumi is designed to take the pain away from collecting money owed from friends, family and work colleagues.

The website, which is fully integrated with Facebook, makes the most out of social media. All payments on Payumi are handled via PayPal, so you don’t have to share each other’s banking details.

How does Payumi work?

You register a payment group on the Payumi site, with details of how much you want to collect, and who from. Your friends can then pay you at the touch of a button.

Your group page keeps you up to date on who has paid, who hasn't, and the running total on getting all of your money back! Automatic email reminders can be set, giving your friends a friendly nudge.

Payments can be made with a debit card, credit card or PayPal. The only person that needs a Paypal account is the one receiving the money.

There are no charges for individual payments up to £20, but above the £20 threshold, there is a charge of between 50p and £2 depending on the size of the money being collected.

[SPOTLIGHT]The charges can either be paid by the collector or their friends. The collector decides who will pay the fees when setting up a collection. PayPal may charge additional fees for payments made using a debit or credit card.

How does it differ from other services?

So how does it differ from other services, like the Barclays Pingit App or O2's Wallet?

Barclays' Pingit service launched in February of this year, as we detailed in Barclays launches Pingit mobile-to-mobile payments. Unlike Payumi, the app is available to everyone over 16 who have a UK current account and a UK mobile phone number - you have to be over 18 to use Payumi’s service.

Barclays has just launched a new video via Facebook which encourages friends to settle their IOUs with the app. The video is customisable and can be sent to friends who are owed money.

O2’s Wallet differs considerably from the Payumi website, as the app is a “virtual wallet” allowing you to transfer money to friends and family and even go shopping using your mobile, by scanning in barcodes and comparing prices in up to 100 shops.

Google has also launched a digital wallet which stores your credit cards, loyalty cards and shopping offers. Like O2’s version it has a secure password system called the “Google Wallet PIN” to prevent any authorised access or payments. The Google Wallet also encrypts payment information and the account numbers of the payment cards don’t appear on your mobile phone’s screen.

One service which is similar to Payumi is Shareagift, though as the name suggests, this is focused solely on gift purchases rather than group purchases, such as a holiday.

Is your money safe?

All transactions are via PayPal. We've written before about some of the issues with using the Paypal. The website also uses VeriSign’s Authentication Services.

So what do you think? Will you be giving Payumi a go? Or will you stick to ringing around to remind your friends that they owe you money? Let us know your thoughts in the comment box below