Banks offer cash transfers via cell number, e-mail address

http://www.usatoday.com/money/industries/banking/2011-05-25-banks-cash-transfer-cell-email_n.htm

by MetricMike • 15 years ago

23 25 15 years ago

samgranger• 15 years ago

DOn't ask me why but I can see this going horribly wrong!

Why? All this allows you to do is to initiate a transfer to someone using their phone or email, rather than making you know their routing number & checking number.

marshray2• 15 years ago

Yeah, that's the problem.

lukejduncan• 15 years ago

I was trying to find the CDixon tweet that said something to the effect: "In a year personal payments will be revolutionized."

Between BitCoin, Square, and everyone elses entry into the market its hard not to agree.

thinkcomp2• 15 years ago

It's nice to see the banks trying to catch up with PayPal 12 years later.

viggity3• 15 years ago

I'm interested to see what their fees are going to be. PayPal is ridiculously expensive (2-3%). Dwolla is a flat 25 cents per transaction (regardless of size).

thinkcomp2• 15 years ago

FaceCash, which I run, is free for peer-to-peer transfers. You can send up to $5,000 per day.

joezydeco• 15 years ago

I'm interested to see if they will clear the funds instantly or sit on them for 2 business days like they currently do.

mrgordon2• 15 years ago

It competes with PayPal, but they really just borrowed the feature from ING Direct. ING has let you send money to anybody with an email address for a while.

patio113• 15 years ago

You need an email address and the bank account information, don't you? I'd love it to be otherwise, but getting banking information from e.g. my younger brothers is a lot trickier than just emailing them.

biot• 15 years ago

Email transfers have been available in Canada since 2003: http://en.wikipedia.org/wiki/Interac_e-Transfer

orenmazor• 15 years ago

yeah, I've been doing this for ages, and now the TD iphone app lets me do from my phone. I have no use for square or any other P2P cashless transfer feature.

viggity3• 15 years ago

Dwolla has been doing something similar for a year now. I wonder how all this shake out.

patio113• 15 years ago

The service is a direct threat to PayPal, which dominates the market for online, electronic payments with nearly 100 million active users.

But all the money in Paypal is in facilitating C2B payments, not in C2C payments. Granted, many of their businesses are tiny compared to the typical credit card charging business, but it doesn't meaningfully compete with anything except, perhaps, the low-end of eBay sellers. (And it won't be allowed on eBay.)

viggity3• 15 years ago

I thought you could pay however you wanted on ebay (including check or cash) it was just up to you to work something out with the seller. From what I understand, Dwolla not only does C2B but also does a ton of B2B transactions per month.

patio113• 15 years ago

Nope, eBay definitely doesn't allow you to just work something out. Sellers are not allowed to induce buyers to "Pay using online or other payment methods not specifically permitted in this policy"

http://pages.ebay.com/help/policies/accepted-payments-policy...

bpmilne• 15 years ago

All in all it's a good move and the system to do it really is not all that complicated. It will be interesting to see the user experience side of things since this has already been available in FI's for years under different names.

Am I the only one thinking this might just be a white label of a solution they were already all using?

mbesto• 15 years ago

"Months behind?" Why has it taken the US so long to catch up with Europe on transferring money via banks? Here in the UK I can pay any company and any person via my bank details. Super easy to do and makes paying my friends back painless and easy.

Very cool to see they've opened this to e-mail and txts now too.

known• 15 years ago

The crux is in transferring beyond borders.

praxxis• 15 years ago

As someone who has just moved to the US from Australia, all I can say is: about time. Back home I'm used to being able to transfer money to anyones bank account with no fees, and with the funds arriving the next day. Coming to the US has seen every check I cash "held" for days, and $25 fees for having the gall to transfer money out of my account without using a check. Paying rent takes at least a week, as the "online transfer" in internet banking is a check sent by the bank! I understand now why PayPal was such a big deal when it came out.

(Disclaimer: I bank with Bank of America, and am waiting with baited breath for BankSimple)

oasisbob• 15 years ago

If ClearXchange really works without a separate account, it could be compelling. Wonder about the implications of Metcalfe's law though.

There are a lot of "me too" money transfer services out there: PopMoney and ZashPay are two more that come to mind.

After a quick evaluation of ZashPay, I wasn't impressed. No T-Mobile support, US only, can't send to/from Oklahoma(!), restrictive EULA, terrible UX.

PayPal is still compelling for this type of payment, as P2P payments can be made with no fees, as long as they're sent from a bank account.

Banks offer cash transfers via cell number, e-mail address

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