Saturday, October 19, 2013

Clearxchange Is Big Bank Competition For Paypal

By Cornelius Nunev


Three of the largest banks in the U.S. are ganging up on PayPal, reports the Associated Press. Bank of America, Chase and Wells Fargo have launched clearXchange, a mobile payments program that aims to make simpler the person-to-person payment process. The banks picture clearXchange replacing old-fashioned bank money transfers completely. Don't fret; you'll still be able to get a payday loan.

Pay a bit more for prepaid debit and PayPal to work

In spite of the fact that big banks originated the cavalcade of account fees that customers have begrudgingly paid for years, Bank of America, Chase bank and Wells Fargo are marketing the Charlotte, N.C. clearXchange as a much less fee-intensive service than old options like prepaid debit cards and eBay's PayPal online payment service. Soon, the mobile payment program will be accessible for many individuals. For now, the person-to-person clearXchange will only go to the three banks' customers.

The Associated Press reports that Jack Stephenson believes the clearXchange is very simple. Stephenson is JPMorgan's Director of Mobile, eCommerce and Payments.

"Customers will be able to send and receive money even more quickly and easily," he said, "with full confidence their funds are in a bank account without worrying about cash, checks or higher-cost services."

PayPal a large oak to fell

According to eBay, PayPal currently boasts about 100 million active users and processed $27.4 billion in payments in the first quarter of 2011, a 28 percent increase from a year ago. The revenue at PayPal hit $992.3 million. Now, eBay is sure that PayPal will annually make more money than its parent company.

This payment system is 'An innovative game-changer'

Wells Fargo Executive Vice President Mike Kennedy told Business Wire that clearXchange's simplicity will change the mobile payments game.

"This is an innovative game-changer in electronic payments," he said. "We want our customers to be able to easily send money to anyone without having to establish a new account outside their primary bank. All our customers need to know is the email address or mobile number of a friend or family member and (clearXchange) takes care of the rest."




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