ClearXchange P2P payments network expands through Visa and MasterCard deals

ClearXchange P2P payments network expands through Visa and MasterCard deals

Early Warning, the American bank-owned operator of the clearXchange P2P payments network, has struck deals with Visa and MasterCard that paves the way for debit card-based transactions on the platform.

ClearXchange currently lets customers of its owners - Bank of America, JPMorgan, Wells Fargo, Capital One and US Bank - send funds directly from their bank accounts to the recipients' using only an email address or mobile phone number.

Now Early Warning has agreed deals to tap the Visa Direct and MasterCard Send platforms to let US debit card holders send money to each other, significantly expanding clearXchange's reach.

"Early Warning is focused on providing real-time payments to all US consumers," says Lou Anne Alexander, group president, payments, Early Warning. "Through our agreement with MasterCard, Early Warning is able to significantly extend the reach of the clearXchange network."

Jack Forestell, SVP, global product, Visa, says: "We are very excited to work with Early Warning to expand the reach of their P2P service which will greatly benefit their member financial institutions and their members’ customers."

The agreements come as America's big banks seek to push back against a host of fast-growing rivals in the P2P payments arena. The likes of Facebook and Square are establishing themselves as strong contenders, while PayPal recently revealed that its Venmo service processed $4 billion in transactions in the second quarter, a 140% year-on-year rise.

Comments: (3)

A Finextra member
A Finextra member 02 August, 2016, 14:29Be the first to give this comment the thumbs up 0 likes

is this all about market share or customer benefit 

A Finextra member
A Finextra member 02 August, 2016, 18:32Be the first to give this comment the thumbs up 0 likes

Looks like mobile P2P payments are at an inflection point in the US.

Steven Hatton
Steven Hatton - Trusek Ltd - Amersham 02 August, 2016, 21:41Be the first to give this comment the thumbs up 0 likes

Clearly there is no ambition here to build a disruptive service to take on the card schemes.

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