Chase adds real-time P2P payments

By June 15, 2016Bitcoin Business

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JPMorgan Chase, the largest U.S. bank by assets, added real-time peer-to-peer (P2P) capability online and in mobile banking apps through bank-based P2P service platform clearXchange, according to Bloomberg .

Chase had previously offered digital P2P using a service called Chase QuickPay. But now, consumers will be able to transfer funds in real-time within the bank and with customers at Bank of America and US Bank, two other major US-based retail banks that have been offering clearXchange since March.

Bank of America payments managing director Mary Harman told Bloomberg that a wave of banks will onboard to clearXchange “en masse” within the next month or two, which will greatly expand the service’s addressable user base.

Chase and its partner banks are offering a service that’s been growing in popularity because of the convenience it provides.Consumers are particularly turning to mobile to transfer money — 46% of customers have made a mobile P2P payment, according to Accenture .

That’s because it provides a more convenient way than cash, checks, or traditional wire transfer to split costs for things like social events and meals. That convenience will spur growth in digital-based transfers.

BI Intelligence , Business Insider’s premium research service, forecasts that mobile P2P will grow to $174 billion, worth 30% of total P2P payment volume, by 2020. That’s up from $5.6 billion, or just 1% in 2014. The upward trend towards digital-based P2P suggests JPMorgan’s new service will be in high demand among its customers.

Banks are newer to the real-time P2P space compared to tech companies, but there’s still considerable opportunity for banks to compete. No one firm has a majority in the space. Venmo, the largest P2P application, holds just 19% of the […]

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