Canadian banks establish P2P money transfer network

Canadian banks establish P2P money transfer network

CIBC, Scotiabank, Bank of Montreal and TD Canada Trust have launched a national person-to-person (P2P) e-mail money transfer service through joint venture operation Certapay.

The national network uses e-mail for notification while the banks transfer the funds using established and secure inter-bank settlement systems. Branded Email Money Transfer, the service will be available to CIBC, Scotiabank, Bank of Montreal and TD Canada Trust online banking customers over the next several weeks. Desjardins Group has also pledged its intention to join the network. Negotiations with other potential banking participants are ongoing say the founders.

"This is the world's first, real-time, bank-based e-mail money network," says Certapay CEO Michael Ginsberg. "Canadians trust their banks' ability to move their money fast and securely. According to Ipsos-Reid, 96 per cent of Canadians said they preferred their bank to offer the service rather than a technology company like Microsoft or Yahoo."

Online customers banking with participating banks will be able to send funds via the service to any recipient, providing they have an e-mail address and Canadian bank account. Once the user has entered the recipient's details and intended payment, CertaPay generates the e-mail notification, which shows up in a recipient's usual e-mail inbox. The recipient then receives an e-mail with hyperlinks to the recipient's bank of choice to deposit the funds.

Chuck Hounsell, senior vice-president, electronic banking at TD Canada Trust, says: "We've all been in the position where we've had to get money to someone or get money from someone fast. Up until now, the alternative has been to write cheques and send them in the mail or get cash and go see the person. With Email Money Transfers, we can now provide our customers with a more convenient option."

Bob Grant, senior vice-president, electronic banking, Scotiabank, adds: "Email Money Transfers are the electronic equivalent of a certified cheque - the funds are guaranteed and recipients have immediate access to them."

Comments: (0)