ClearXchange is large bank competition for PayPal

The Associated Press states that PayPal should watch out right about now, because three cut-throat banking giants are getting even closer. Bank of America, Chase and Wells Fargo now are offering clearXchange as a cheaper, easier option to mobile payment businesses like PayPal. Three United States banking companies anticipate that clearXchange will eventually replace traditional money transfers altogether.

Pay more for prepaid debit and PayPal to work

Bank of America, JPMorgan Chase and Wells Fargo are suggesting that the Charlotte, N.C. clearXchange has fewer fees than prepaid debit cards and eBay’s PayPal, even though banks bring on the fees. The person-to-person clearXchange will only be given to the three banks’ consumer base, but it will change to the mobile payment program soon.

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 is quite big

In the first quarter of 2011, PayPal processed $27.4 billion in payments with its 100 million active users that currently using it, reports eBay, which is a 28 percent increase from last year. EBay is sure that PayPal will make more money than its parent company annually soon as PayPal’s revenue hit $992.3 million.

‘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.”

Citations

Reuters

reuters.com/article/2011/05/25/idUS131437+25-May-2011+BW20110525

USA Today

usatoday.com/money/industries/banking/2011-05-25-banks-cash-transfer-cell-email_n.htm

ROAM Data, Inc.’s Rob Stringer on end-to-end encryption

youtube.com/watch?v=2NU-E0Ul59I