US Bank and Bank of America launch P2P real-time payments
Customers at US Bank and Bank of America can now make real-time P2P money transfers using their phones. The payments move over the clearXchange network, initially formed by a number of US banks including US Bank and Bank of America alongside Capital One, Wells Fargo, Chase back in 2011 to process P2P payments from email or mobile numbers. The consortium is known as Early Warning and customers that belong to banks not part of the network can also receive payments.
US Bank and Bank of America are the outriders of the group, but when all the members go live the network will extend to more than 100m customers, with an estimated 22m of them on mobile in the US. That’s expected to happen later on in 2016.
The banks are moving to court younger consumers, with whom P2P payments services like PayPal-owed Venmo are proving extremely popular. Venmo said it processed more than USD1bn in payments in January alone this year.
The move pips NACHA in launching same day payments, which is set for phase one roll out in September this year to support use cases such as hourly payroll, P2P and same day bill paying. In an interview during Money 2020 in Las Vegas last year, PaymentEye caught up with the CEO of NACHA, Jan Estep to talk about the future of faster payments.