Three of America’s biggest banks have joined forces and
gone live with an an online banking service, titled
clearXchange, on 25 May.
Wells Fargo,
Bank of America and JPMorgan
Chase said that the joint online banking platform,
which they claimed was the first such bank-owned solution, would
enhance the quality of their service and make transactions
easier for customers.
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The difference of the service to traditional online banking is
that customers will be able to transact money using an e-mail
address of mobile number, instead typing in details of their
current account or routing number, a nine-digit code used in the US
to identify a particular bank when paying funds.
The three banks said in a statement that they considered
expanding the service to include other financial institutions to
create a money movement capability across the industry.
The executive vice president and head of payments strategy at
Wells Fargo, Mike Kennedy, called the clearXchange service a
“game-changer in electronic payments”.
Kennedy said:
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By GlobalData “We want our customers to be able to easily send money to
anyone without having to establish a new account outside their
primary bank. All our customers need to know is the e-mail address
or mobile number of a friend or family member and we will take care
of the rest utilising clearXchange.”
Setting themselves apart from competition
Bank of America’s eCommerce, claims and fraud executive David
Owen said that the clearXchange payment service helped the three
banks to differentiate their capabilities is service propositions
from other competitors – in a marketplace, where competition for
electronic payments is heating up steadily.
JPMorgan Chase’s director of mobile, eCommerce and payments,
Jack Stephenson, said:
“clearXchange will allow us to make our popular person to person
payments service even better. Chase customers will be able to send
and receive money even more quickly and easily – with full
confidence their funds are in a bank account without worrying about
cash, checks or higher-cost services.”
Wells Fargo, Bank of America, JPMorgan Chase take on
Google, eBay
The three banks’ joint venture follows news that Google is going
to announce a payments service for its operating system Android on
26 May.
Google’s mobile payment service will allow mobile phone users of
Android-powered devices, such as the HTC phones, to pay for
purchases by waving their phone in front of near field
communication (NFC) supporting POS machines.
But besides the search enginge giant’s push into mobile
payments, the three banks are also taking on eBay’s electronic
payment service PayPal, which eBay acquired in 2002 and which
has become so popular that it accounted for 64% of eBay’s first
quarter earnings.
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