Banks form cash transfer system to rival PayPal

Banks form cash transfer system to rival PayPal

NEW YORK (CNNMoney) -- Three major banks have formed a joint streamlined transfer system in an attempt to rival PayPal.

Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) announced Wednesday that they will launch a system, called clearXchange, allowing customers to transfer money electronically through the use of mobile phone numbers or email addresses.

Print The systems could replace other electronic transfer systems that require checking accounts and routing numbers, the banks said.

"We want our customers to be able to easily send money to anyone without having to establish a new account outside their primary bank," said Mike Kennedy, head of payments strategy at Wells Fargo, in a statement. "All our customers need to know is the e-mail address or mobile number of a friend or family members, and we will take care of the rest utilizing clearXchange."

ClearXchange wasn't on board yet, as of early Wednesday, when accessing the company's website brought up the message: "Future home of something quite cool."


http://money.cnn.com/2011/05/25/news/companies/banks_paypal_clearxchange/?section=money_latest

"Moving money via ACH is technically simple, the real challenge is in risk/fraud management. "
that quote from an article in support of the venture...
http://tomnoyes.wordpress.com/2011/05/24/clearxchange/

You can be certain this will be another example of Capitalism on the profits, Socialism on risk.