|Zashpay, Popmoney P2P networks combined|
Fiserv Inc. announced that it will combine the Popmoney and ZashPay person-to-person payment networks, and market the enhanced service as Popmoney. The resulting network will connect 1,400 financial institutions and reach 35 million consumers through their existing online and mobile banking relationships.
ZashPay was launched by Fiserv in 2009 as a convenient P2P payment product that leveraged the company's bill payment network. Popmoney became part of Fiserv as a result of the acquisition of CashEdge in September 2011. All clients will be upgraded to the enhanced Popmoney product and network by mid-2012.
According to financial industry analyst firm Aite Group, consumers make 11 billion person-to-person payments a year, the vast majority by cash or check. Popmoney enables consumers to make these same payments electronically via their existing bank accounts. Both individuals and small businesses can exchange money securely using the service, and request payments from other consumers and small businesses.
Person-to-person payments are one of the last frontiers for transitioning paper-based payments to electronic ones, and products like Popmoney make that possible. Instead of mailing a check or running to the ATM for cash, consumers can pay another person or small business from their computer or smartphone. Behind the scenes, this payment will be handled by the same technology that moves online bill payments today.
The combined Popmoney and ZashPay network includes some of the largest financial institutions in the United States, such as Citibank, PNC Bank, Regions Bank, Fifth Third Bank, and BBVA Compass, as well as more than 1,300 regional and community-based institutions. In addition, Popmoney will be integrated into the CheckFree RXP payment suite from Fiserv, which is in use at 3,600 financial institutions.
The enhanced Popmoney offers the ability to request money from individuals or groups, import contacts to a payee list, and send e-greetings along with electronic cash. These features will allow banks to meet the growing electronic payments needs of their customers and tap new transaction revenue streams.
[This article was posted on March 13, 2012, on the website of ABA Banking Journal, www.ababj.com.]
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