BOSTON — Fiserv has announced plans to roll out a person-to-person (P2P) payments service allowing consumers to send money to one another using their existing online relationship.
The yet-to-be named service is set for roll-out in the first half of 2010 among any of its 3,100 financial institution clients that use its CheckFree RXP online bill payment platform. Other financials will be able to connect to the personal payments network through web services following the initial launch.
Using an e-mail address or mobile phone number, users will be able to send money to anyone they know, according to Fiserv, without sharing any account information with a third party. Payments will be deposited directly into the recipient's account and confirmation of payment will be sent to the recipient's e-mail address or mobile number.
Fiserv will use the FraudNet automated fraud detection system to monitor fraud.
Steve Shaw, director of Strategic Marketing-Electronic Banking Services, told Credit Union Journal during BAI's recent Retail Delivery Show that credit unions will be able to add the P2P function to their existing bill pay service with little trouble.
"If your financial institution is a participant, you can sign on there. If not, you can sign on at a public site," said Shaw.
Although the model has yet to be refined, the P2P service will offer potential for generating fee income with a charge levied on the sender. That charge might be a percentage of the amount sent, or be based on tiers, or may be something altogether different. "We are working on how to deploy the pricing structure," said Shaw. Similarly, yet-to-be worked out are pricing models for clients and non-clients.
In addition to responding to inroads PayPal has made in the P2P space, Shaw said the service helps speed funds clearance, and ensures there is no need to go outside the financial institution relationship to a third party.
