MasterCard launches personal payments service

MasterCard launches personal payments service

MasterCard has launched a service designed to make it easy and fast for businesses, governments and others to send money to consumers around the world.

Live in the US, MasterCard Send is a "personal payments service" that gives the likes of merchants and non-profits access to a platform from which they can send money to consumers whether they are banked or unbanked, and located domestically or abroad.

Berkshire Hathaway Travel Protection and FreeShipping.com have already signed up for the service, which MasterCard says will boost convenience, choice and security for both payment senders and receivers, who still often deal in cheques.

Insurance claims, rebates, e-marketplace payouts, social benefits and tax refunds can be sent in real-time to mobile money and bank accounts, and via cash agent outlets. Payments can be made to and from virtually any US debit card account, including non-MasterCard ones, with MasterCard claiming its system is "far superior" to other options that either limit transfers within a closed-loop network or involve ACH.

In addition, consumers can use the platform for P2P payments through providers including issuers, money transfer operators, merchants and more. The service also provides the capability for cross-border P2P payments.

Ed McLaughlin, chief emerging payments officer, MasterCard, says: "MasterCard Send is addressing a real need that exists in today’s digital world to enable consumers, businesses, governments and more to have a safe, simple and secure way to transfer and receive funds quickly."

Comments: (7)

A Finextra member
A Finextra member 19 May, 2015, 15:56Be the first to give this comment the thumbs up 0 likes

Depending how this product is introduced this can be a new effective methodology for the payment mechanism. This could shoot a big hole in the ACH and Wire Transfer world.  

A Finextra member
A Finextra member 19 May, 2015, 16:46Be the first to give this comment the thumbs up 0 likes

Agree, such a P2P service has held potential for both Visa and MasterCard and seemed to be a Quick Win for years now, but did not get there.

For me what seems new and interesting is to extend the capability beyond issuers, to merchants and non-profits. I also think it will need strong branding to differentiate from past history of MasterCard MoneySend.

A Finextra member
A Finextra member 19 May, 2015, 16:49Be the first to give this comment the thumbs up 0 likes

We have to do the introduction perfect to get these new parties to accept this service.

A Finextra member
A Finextra member 19 May, 2015, 16:501 like 1 like

I will be interested to learn more -  Price is the key... whats it going to cost?

A Finextra member
A Finextra member 19 May, 2015, 16:53Be the first to give this comment the thumbs up 0 likes

I don't know the price however you should be able to have a lot of flexibilty. It would depend on the quality of the service, the speed of delivery and how people or organizations touch the process. i would believe the process should be pretty straight forward not like some debit card processing that has every regional organization being used as a passthrough therefore increasing cost.

Paul Davidson
Paul Davidson - Expense Reduction Analysts - London 20 May, 2015, 09:38Be the first to give this comment the thumbs up 0 likes

I agree it has potential and that pricing will be a key factor - however for me it'll be how effectively the service is promoted to end users, who are already confused by all the claimed solutions, which will determine its adoption.

A Finextra member
A Finextra member 20 May, 2015, 09:52Be the first to give this comment the thumbs up 0 likes

Indeed, but not just pricing ...- Wonder when this emerging new distributed ledger technologies like Ripple or Hyperledger will show up in the background of those and other payment systems. In particular Ripple seems very promising. Basically those ledgers are free to use, cross currency, instant and irrevesible - acting like REAL virtual cash if you want.... Have been playing around a bit with the Rippletrade wallet/account and it really is an amazing experience!