Page 84 - Pay Magazine s2014

digital money
P2P Poised for Growth?
several days, especially when they involve different financial institu- tions. Consumer concern about payments security at a time when data breaches seem commonplace also could be discouraging pro- spective P2P users from sharing
their account details on apps and with new payees.
These challenges haven’t stopped providers looking to stake their claim in P2P payments. Facebook recently introduced a P2P service;
more banks are touting their P2P offerings; Apple and Microsoft are making noise about entering P2P and—perhaps most significantly— PayPal Inc.’s Venmo subsidiary is gaining steam with millennials (see sidebar below). “For a
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P2P’S BIGGeSt PotentIAl PlAyeRS
Apple Inc. P2P on the Road Map?
In July of 2015, it came to light that the tech titan filed for
a patent in 2014 suggesting it has plans to extend P2P services to Apple Pay users. The patent describes a service enabling Apple Pay users to send payments linked to a bank account or payment card to one another via Apple’s encrypted, secure element-based payments technology and Touch ID; no further details have emerged.
clearXchange Bank to Bank.
Formed in 2011 and equally owned by Bank of America, JPMorgan Chase & Co., Wells Fargo & Co. and Capital One, clearXchange is a digital payments network enabling bank members’ customers to send payments to anyone with a U.S. bank account using an email address or a mobile number. Customers of non-participating banks may receive P2P payments by creating a clearXchange profile. Com- bined, member banks reach more than 250 million customers and more than 6,000 banks used clearXchange during the second quarter of 2015. Banks often white-label the service (Chase offers it as QuickPay).
FIS People Pay.
FIS in 2013 introduced People Pay, a white-label P2P service for financial institutions enabling bank customers to send funds to peers, whether or not their bank supports People Pay. Senders must provide the recipient’s mobile phone number, email address or bank account number; transfers between customers of banks with People Pay take place in real time.
Facebook P2P via Messenger.
Facebook in June 2015 rolled out a P2P payments service
in the U.S., through its Facebook Messenger app. Users may send funds by starting a message and tapping the $ icon and entering the amount. Funds are sent immediately to the recipient’s enrolled debit card; the cost is free (there is no credit card option). Messenger has more than 700 million monthly active users worldwide.
Fiserv Popmoney Between Banks.
Fiserv offers Popmoney, a P2P service that got its start in 2009. Popmoney enables users to send money to others directly from their existing bank accounts, with senders notified via a text or email. Sending money from Popmoney. com or the Popmoney app costs 95 cents. Fees for sending money from financial institutions vary, with most offering standard payments for free. Receiving money is free. Popmoney is available through more than 2,400 financial institutions, reaching 70 million consumers. Real-time payments are available at more than 160 participating FIs.
Google Inc. P2P Free in Gmail, Google Wallet.
Google Inc. in 2013 introduced P2P services via its Gmail email service, and simultaneously integrated the feature with Google Wallet. Gmail users may send funds to anyone with an email account; recipients must sign up for Google Wallet to receive funds. There is no fee, and transfers can be funded only from a Google Wallet balance, debit card or linked bank account (which can take up to several days). Google in 2015 expanded P2P services via Gmail to users within the U.K.
MasterCard Riding Debit Rails.
In May 2015 MasterCard introduced MasterCard Send,