May 26th, 2015 by Elma Jane
MasterCard is aiming to change the way people transfer money between debit cards, with its new program called MasterCard Send. This first-of-its-kind, global personal payments platform allows consumers to send and receive funds within seconds, rather than waiting for the standard 1-3 business day transfer time.
Unlike most person-to-person (P2P) processors like PayPal, MasterCard Send is not designed specifically for consumers. Instead, it aims to help businesses send disbursements and cash back to customers in something very close to real-time.
Customers can receive direct deposits into their debit card accounts for shipping rebates. There is no waiting for a check in the mail or a long transfer process.
Consumers can still use MasterCard Send to send and receive money from friends and family members. The recipient does not need a debit card to access the funds. Send will also work with programs like Western Union.
According to MasterCard, cash and checks still contribute $1 trillion in global spending every year. MasterCard Send is attempting to be a safer, faster and cheaper alternative to these transactions. The program is now live in the United States.
MasterCard Send is addressing a real need that exists in today’s digital world to enable consumers, businesses, governments and more to have a safe, simple and secure way to transfer and receive funds quickly.
Posted in Financial Services Tagged with: card accounts, cash back, check, consumers, debit cards, direct deposits, funds, MasterCard, p2p, payments, processors, transactions
May 9th, 2014 by Elma Jane
Facebook is apparently ready to become a person-to-person (P2P) money transfer network. The clear decision to launch a money transfer service in the region can be seen as a test bed for Facebook’s larger ambitions of becoming a payments hub for its 1 billion user base. Facebook was only weeks away from gaining regulatory approval in Ireland for its remittance platform FT quoted unnamed sources. Facebook’s P2P platform will be geared to facilitating migrant remittances, with the goal of expanding its payment presence in emerging markets such as India. Facebook makes the bulk of its revenue from advertising, but 10 percent of its profits reportedly come from in-game payments for online and mobile games, such as Zynga’s popular FarmVille.
From WhatsApp to what’s next
Facebook’s February 2014 acquisition of mobile messaging service WhatsApp for $19 billion clarified the social network’s strategy. The WhatsApp acquisition and the expected P2P network launch as part of the first phase of Facebook’s deeper immersion into payments.
Tech giants face up to payments
When comparing the payment strategies of tech giants Google Inc., Apple Inc. and Facebook, the latter two competitors as having bigger potential upsides than Google. Facebook and Apple (via iTunes) already have established financial relationships with millions of users who have attached funding mechanisms – debit and credit cards – to their social media accounts. As primarily a search engine, Google is playing catch up to persuade its users to set up Google Wallet accounts.
In May 2013, Google launched its own P2P network by integrating Google Wallet with Gmail accounts, so that wallet users can facilitate money transfers via email. More recently, reports have surfaced indicating Google plans to extend Google Wallet to its wearable technology solution Google Glass. But the success of such ventures rests on users’ confidence with Google as a financial service provider.
Facebook as having a brighter financial services future than Apple. Apple’s reach is limited to consumers who have iPhones and iPads, whereas Facebook is not tied to any branded mobile devices, it is a very ubiquitous offering. It could apply to anybody with any type of phone or tablet.
Eventually, tech companies like Facebook will need to partner with payment businesses in order to expand into the merchant-centric brick-and-mortar world. The mobile POS solution provider, a business unit of global POS terminal manufacturer Ingenico SA, would be an ideal partner for Facebook. If they extend what they do from P2P payments to more of a wallet purchasing capability for their users, then the next step could very easily be an extension of that into servicing the merchant side.
Posted in Financial Services, Mobile Payments, Smartphone Tagged with: Apple Inc.Facebook, consumers, credit cards, debit, device, financial service, financial service provider, Gmail accounts, Google Glass, Google Inc., Google Wallet accounts, ingenico, iPads, iPhones, iTunes, merchant-centric brick-and-mortar, migrant remittances, mobile, Mobile Devices, mobile games, mobile messaging service, mobile pos, mobile POS solution, mobile POS solution provider, money transfer, money transfer network, money transfer service, network, online, p2p, P2P network, P2P payments, P2P platform, payment businesses, payments, payments hub, phone, POS terminal, remittance, remittance platform, search engine, service provider, social media, social media accounts, social networks, tablet, wearable technology
April 18th, 2014 by Elma Jane
Capital One joins existing stakeholders equally owned by Bank of America, JPMorgan Chase, and Wells Fargo. Member-owner of the ClearXchange network.
Capital One has taken a stake in ClearXchange, the US bank-backed clearing house for person-to-person online payments transfer.
ClearXchange is the first network in the U.S. created by banks that lets customers send and receive (P2P) person-to-person payments easily and securely using an email address or mobile number.
With only the recipient’s mobile number or email address, the ClearXchange network enables customers to send funds directly from their bank account to the recipient’s bank account without the need to pass on more sensitive account information.
EVP of digital at Capital One, says partnering with clearXchange is another way of bringing safe and secure payments through convenient, digital channels to their customers.
With membership open to banks and credit unions of all sizes, ClearXchange has so far signed up only FirstBank as its sole non-owner participant, although it nonetheless claims to represent more than 50 percent of the consumer online banking market.
Posted in Credit card Processing, Electronic Payments, Merchant Services Account, Mobile Payments, Payment Card Industry PCI Security, Small Business Improvement, Smartphone, Visa MasterCard American Express Tagged with: account, bank account, Bank of America, Capital One, consumer online banking, digital channels, JP Morgan, market, mobile, online payments transfer, p2p, payments, person-to-person, secure payments, securely, U.S. Bank, US Bank, Wells Fargo
