While many person-to-person payment services exist, consumers and financial institutions are still looking for an easier method, reports The New York Times.
Nearly two-thirds of Americans give money both for birthday and holiday presents at least once each year, according to an Aite Group study. Another quarter handed off financial support, often to a relative. This adds up to 11 billion transactions and $865 billion annually.
Financial institutions want to develop a direct account-to-account system between financial institutions rather than sending consumers through third-party applications or down the check-clearing infrastructure, the Times reports. But such a system could mean taking on more risk or charging fees.
Among the payment services are:
The Times points out big banks don’t fear PayPal as much as they do iTunes, Google, or Facebook, because they all attract so many younger users with mobile devices. And Facebook is looking for a way to recover revenue and influence lost to Apple and Google—and it believes mobile devices are the way to do it, according to Reuters. The company reported in its initial public offering that more than half of its 845 million active users accessed Facebook from a mobile device.