Incredible, in this digital age most people paying a house cleaner or collecting money still use cash or a check. And checks are slow…The slowness has led Americans to new mobile services, like PayPal’s Venmo or Square Cash. But Big Banks are waking up.Wells Fargo joined JPMorgan Chase, Bank of America and US Bank in allowing customers to send money in seconds to one another’s bank accounts using just a phone number or email address.
The real question is: who will control the payment network of the future? Fintech Players? Credit Card Operators? High Tech Challengers like Apple, Google and Samsung? Leading Banks? American bank executives fear that they could lose ground to plucky payment companies like Venmo, a popular choice among millennials who want to pay each other — and send emoji-filled messages to their friends.
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Who will control the payment network of the future? Under Pressure, Big Banks Vie for Instant Payment Market
1. Under Pressure, Big Banks Vie for Instant
Payment Market
Venmo advertisements on a subway in Manhattan. More Americans are turning to services like Venmo, PayPal’s instant mobile payment
service, because they consider banks too slow.
JOSH HANER / THE NEW YORK TIMES
By MICHAEL CORKERY and NATHANIEL POPPER
AUGUST 1, 2016
In this digital age when almost anything can be had in an instant, the movement of money
can seem glaringly slow.
Most people paying a housekeeper or collecting money for an office pool still use cash or a
check, which can take days to go through — a relative eternity that banking regulators
worry is impeding commerce and economic growth.
The slowness has led many Americans to new mobile services, like PayPal’s Venmo or
Square Cash, which make it possible to pay a friend instantly with just a phone.
Now, the banks are catching up. On Monday, Wells Fargo joined JPMorgan Chase, Bank of
America and US Bank in allowing customers to send money in seconds to one another’s
bank accounts using just a phone number or email address. Customers of the biggest banks
can now use their mobile phones, say, to send money instantly to a child in college who
needs cash.