New payment method for BST? Opinions?

goingbroke

Banks offer cash transfers to cell numbers, emails
Wells, Chase and BofA system to transfer cash from checking accounts to emails, cell numbers


The banks say the service, called clearXchange, will make payments easier than traditional money transfers, which require a bank routing number and move through a system controlled by Federal Reserve banks.

The service is a joint venture between Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. The banks expect to add other financial institutions, eventually creating an industry-wide utility for moving money.

ClearXchange is an attempt by the banks to retain fee-weary customers who have embraced alternatives such as prepaid debit cards and eBay Inc.'s PayPal service.

The clearXchange system will be available nationally to customers of the three banks. The banks noted that clearXchange is linked to existing accounts, so customers don't have to sign up and provide new personal information as they would with PayPal.

"Customers will be able to send and receive money even more quickly and easily -- with full confidence their funds are in a bank account without worrying about cash, checks or higher-cost services," said Jack Stephenson, director of Mobile, eCommerce and Payments at JPMorgan.

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

EBay said last month that PayPal processed $27.4 billion in payments during the first quarter, a 28 percent increase over the previous year. PayPal's revenue was $992.3 million, and eBay expects PayPal's revenue to surpass that of the auction site in the next few years.

"This is yet another sign that the traditional payment industry's model is looking more and more like PayPal's," said Dan Schatt, head of financial innovations for PayPal, in an e-mailed statement.

ClearXchange will be managed by John Feldman, a Bank of America employee. Like Bank of America, it will be based in Charlotte, N.C.

No more Pay Pal?

AUandAG

I don't have a clue as to what you just said. Perhaps I'm out of the loop. But I do have a bank, just
not a cell phone that has any type of capability like using the internet (which would be required?).

How would I link the cell number to the bank and get my money out of my phone? If I could.

How secure is the cell service? That signal is floating out there transferring money and it's 100% secure?

bob

PS: I like the idea of cutting down my Paypal use!

derryb

One time use credit card numbers are becoming popular. Bank issues it, you use it once and account number is then no longer valid.

OPA

From what I understand, this is only available for intra bank transfers and w/o charge at this time, but subject to change. The Banks are looking for additional sources of gauging the consumer & this has the potential to do so.

DrBuster

Thought I heard on the news this morning that Google is doing a payment thing with these same phone/time features...?

Pokermandude

Within Canada, there's a method called Interac Email Money transfer which has been quite useful. Essentially it's like a bank wire, but done through the buyer's online banking, sends a link to the seller's email. Seller logs in, confirms the transfer (using a password the buyer sends them seperately) and the money is there nearly instantly. No fees for the buyer beyond a normal Interac point of sale purchase, none for the seller either as far as I recall.

Not sure if this method is available for US->US or Can->US/US->Can transactions.

57loaded

<< <i>Thought I heard on the news this morning that Google is doing a payment thing with these same phone/time features...? >>



yes later this year, one needs a "smart" phone of course, also you may need a special card to load funds onto the phone at first.

Coins101

If anything, maybe this will give PayPal some competition and maybe force them to reduce their fees, like on actual cash payments received from a buyer. Every questionnaire I get from them (& eBay) I tell them it is a rip-off charging the same fee on a cash transaction compared to a credit card transaction. Let the seller choose if they will accept credit cards or only cash and reduce the cash fee to, say, 1%.

pf70collector

Just a way for the banks to make you feel comfortable getting this for free and than charging a fee later on. It will come. They are desperate to make up fees. Kind of like a teaser rate.

jmski52

The banks can't stand not being involved in every transaction you make. Kinda spooky.

derryb, what kind of an accounting nightmare will it be to make regular use of a "one-time credit card number"?

This whole electronic banking trend is not a good thing, imo. I don't see the value.

derryb

EBay and PayPal sue Google

derryb

<< <i>what kind of an accounting nightmare will it be to make regular use of a "one-time credit card number"? >>


From what I've read the bank provides account number generator software and a one time account number is created by the buyer at the time of on-line purchase.

jmski52

From what I've read the bank provides account number generator software and a one time account number is created by the buyer at the time of on-line purchase.

That's what I'm saying. To record and track each transaction, you will have to keep track of a new account number for every transaction, instead of getting an account statement with a single account number and the transactions all listed under one account.

Good grief. It's will start looking like the "tranches" in the screwed-up derivatives mess. Slice & dice. Nobody will know what's going on, and then the computers will crash at some point.