Bank of America and Wells Fargo have gone live with the clearXchange person-to-person payments platform, which enables users to send and receive payments through online and mobile banking using just an e-mail address or mobile phone number.
Is this some thing different to that of one implmented in India as IMPS based on mobile telephone number ?
Hi Srinivas C:
Nice to see you on Finextra!
Far as I know, there are at least two key differences: (1) IMPS requires the sender and receiver to be pre-registered with IMPS and obtain a certain MMID # before the payment can be initiated (2) IMPS payments can only be sent to the beneficiary's MMID #,
not email address or mobile phone #.
Whereas, in the case of clearXchange, PopMoney, ZashPay and PingIt, only the sender has to be pre-registered with the respective service before the payment can be initiated. Sender simply sends money to the beneficiary's email or mobile phone #. Beneficiary
needs to register with the service only upon hearing that, by doing so, they can collect some money. This is similar to the manner in which Hotmail and PayPal became viral when they launched more than 10-15 years ago.
While these differences might sound technically minor, PayPal, PopMoney et al have designed their service to resonate far better with typical consumer behavior and have been rewarded with significant mainstream adoption. Whereas, I won't be surprised if
IMPS heads the way of Nokia Money, whose design suffered from the same friction as IMPS' does.
© Finextra Research 2015