Peer-to-peer payments are revolutionizing the way we transfer money. Instead of waiting in line at the bank, or going through cumbersome or expensive online services, users can now send and receive funds with a few simple taps on their phones. P2P payments are safe, secure and instantaneous – allowing users to quickly and easily pay friends or family members directly, without ever having to leave the comfort of their own home. This new technology offers immense benefits for users as it eliminates geographic restrictions and unnecessary banking fees associated with traditional payment systems.
Chase Bank will be utilizing clearXchange for its P2P service, QuickPay, as was widely reported in several publications including Business Insider:
“… consumers will be able to transfer funds in real-time within the bank and with customers at Bank of America and US Bank, two other major US-based retail banks that have been offering clearXchange since March”
“Bank of America payments managing director Mary Harman told Bloomberg that a wave of banks will onboard to clearXchange “en masse” within the next month or two, which will greatly expand the service’s addressable user base. “
Previously, several of the clearXchange bank partners were using clearXchange only between their own customers, similar to an internal transfer. With the purchase of clearXchange by Early Warning, the fraud and authentication tools that Early Warning brings to the table have been more fully integrated which may be the reason banks are more willing to move payments between their respective customers.
Chase’s product is striving to match the ease of use that some of the FinTech providers such as Venmo provide by allowing customers to enroll and add recipients from their mobile phones. Chase is already managing more real –time P2P payments transfers than the popular Venmo service:
Chase has a massive user base that’s already making bank-to-bank transfers, activity that could be amplified once Chase joins forces with partner banks. Chase QuickPay processed $20 billion last year in P2P payments, according to Bloomberg. For context, Venmo processed about $7.5 billion.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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