The Bankwatch

Tracking the consumer evolution of financial services

Some signs of a challenge to traditional wires for sending money

Retail payments, and in particular mobile payments have been a long time coming.  The mere fact that Banks still refer to ‘wires’ when sending money, and firing it at a rapid 48 – 72 hours delay around the world is tremendously archaic, and in dire need of rejuvenation.  However there is hope on the horizon, and two examples popped up this week.  The first brought to my attention by the good folks at RBC Applied Innovations.

First off, RBC have a limited time trial underway.

RBC Mobex Mobile Payment Service is currently just a limited time Trial Program with RBC staff, their family and their friends. The objective of the trial is to test the functionality of the service and gain an understanding of what improvements are required to ensure the best user experience.

The RBC solution is a ‘stored wallet’ solution, where you upload funds from credit card or bank account then you can use the following transactions, courtesy of rbcmobex.com

image

Note the recipient does not have to have a Mobex account to receive the funds, although they need to register.

The other is a different solution, and one that is more vendor centric.  CashEdge as part of their overall solution send funds to other Banks customers accounts.  What is not entirely clear to me is whether the recipient Banks must be CashEdge  users.  Anyone from CashEdge care to chip in with an answer to that?

CashEdge introduces money movement platform

Third-party Transfers, a modular add-on to CashEdge’s TransferNow Product Suite, enables financial institutions to offer their customers the ability to make secure funds transfers directly from a customer’s account to third party (such as friends and family) accounts held at other financial institutions. The service enhances financial institutions’ online offerings, improves customer satisfaction and generates incremental transaction-based revenue.

Relevance to Bankwatch:

Money movement for average retail customers that is convenient, cheap and not ‘wires’ are a long time coming.  I assume these solutions will be intra country at first.  UK, Australia, Japan and others do have ATM transfers to other people, but the convenience of mobile is what sets the RBC solution apart. 

In any event, quick retail money movement alternatives not stuck in the expensive and bureaucratic SWIFT worldwide system would be a good thing, and nice to see competition on the way, with the potential for inter country transfers too.

Written by Colin Henderson

September 27, 2008 at 11:49

Posted in Payments

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