Payments

Venmo who? Fiserv expands P2P payments to more Americans

  • Fiserv can now facilitate P2P transactions for 75% of all U.S. deposit accounts.
  • "We want them to live their lives and pay their bills when they have to pay them."
close

Email a Friend

Venmo who? Fiserv expands P2P payments to more Americans

A recent deal between two industry players means more financial institutions will be offering peer-to-peer payments to their banking customers.

Earlier this month, the financial services technology provider, Fiserv, and large banking network, Early Warning, announced a partnership to bring faster payments to Fiserv’s network of banks and credit unions.

One of the most talked about trends in payments has been speed, with calls for real-time payments and faster banks transfers. Consumer expectations for faster financial services have outpaced the speed at which financial institutions have been able to make their aging systems faster.

“The biggest thing going on for U.S. payments is real-time capabilities,” said Tom Allanson, president of electronic payments for Fiserv. “Our payment systems are old, and customers expect to move money as fast as they move everything else, and unfortunately this industry is a bit behind.”

Fiserv’s NOW network, introduced at the 2014 Money 20/20 conference, connects financial institutions with billers, small businesses, and consumers with real-time payment capabilities. Its partnership with Early Warning gives Fiserv capabilities for expanding the number of account holders it can reach. With EWS, the company can facilitate bill payment and deposits, totaling a combined 6,000 banks and credit unions, representing 75% of all deposit accounts in the US.

“The idea is that EWS has the connectivity and we have the technology. From fraud to customer service to moving money, the connection of those two things is how a partnership comes together,” said Allanson.

The agreement with Early Warning’gives Fiserv the ability to connect financial institutions to EWS’s clearXchange network in addition to the the firm’s own Popmoney. Similar to Venmo, Fiserv’s Popmoney app gives consumers the ability to transfer funds to friends and family directly from their bank accounts using only phone numbers and email addresses.

Fiserv’s technology has been developed for financial institutions, so customers who might hesitate to send money through a third party app now have the comfort and stability of an institutional P2P payment option.

“Our focus is on financial institutions, while Venmo focuses more on millennials,” commented Allanson. “Our dollars and cents have to be clearer since we’re working with financial institutions. It’s unclear to us how Venmo makes money, but that’s PayPal’s problem.”

The firm’s technology stack attempts to simplify the lives of the customers of its banking clients. That’s why it created an agnostic network that facilitates multiple payment rails. Philosophically, Fiserv believes that removing complexity lowers the hurdle to getting more people using digital payments.

Fiserv’s Popmoney doesn’t intend to overload end users with decisions about different payment methods. Users tell Fiserv where, when, and to whom they want money transferred, and the technology takes care of the rest.

“Our goal is not necessarily to try and dominate, but provide services to the consumer that allows them to do the things they want to do. We want them to live their lives and pay their bills when they have to pay them,” he said.

0 comments on “Venmo who? Fiserv expands P2P payments to more Americans”

Payments

Revolut moves into e-commerce with Revolut Shopper

  • Revolut Shopper allows users to find online discount deals while offering security with single-use virtual cards.
  • Other new features include purchase protection, username personalization, and the ability to track spending.
Ismail Umar | May 27, 2021
Member Exclusive, Payments

Splitit launches new integrated payment gateway for installment payments

  • Splitit Plus integrates Splitit’s signature installments platform with a payment gateway.
  • Key features include a quick set-up and seamless integration.
Shehzil Zahid | May 14, 2021
Member Exclusive, Payments

‘Tap-and-ride’: How public transportation is making room for contactless payments

  • The public transportation industry’s adoption of contactless forms of payment is taking off as a result of the pandemic.
  • The adoption of contactless in public transport could pave the way for contactless to integrate into other industries as well.
Rivka Abramson | May 04, 2021
Member Exclusive, Payments

Google Maps and Waze enable users to pay for parking and gas

  • Google Maps allows its users to pay for parking and public transport from within the app.
  • Waze enables drivers to pay for fuel and parking through its partner apps.
Ismail Umar | April 26, 2021
Payments

More fintech firms are offering crypto rewards on debit and credit cards

  • A growing number of fintechs are providing bitcoin rewards on debit or credit card purchases.
  • Unifimoney is the first to offer credit card rewards in three different asset classes.
Ismail Umar | April 22, 2021
More Articles