Among family members and friends who send money to each other through a single bank, Chase’s QuickPay rules, with the nation’s largest bank boasting that it has processed $20 billion in 2015.
Moreover, Chase said that QuickPay processed $2 billion in January 2016 alone — double what PayPal’s Venmo achieved.
Now, Chase and a slew of other big U.S. banks want to create a single “QuickPay” of sorts to better compete with Venmo’s money-transfer app, which is growing incredibly fast in popularity.
At its investor day on Feb. 23, JPMorgan Chase announced that a new, bank-led money-transfer service is scheduled for release later this year. Customers of the banks that would form the service — Chase, Bank of America, Wells Fargo, Capital One, BB&T, PNC, and US Bank — represent about 60 percent of U.S. consumers with mobile apps, Chase said in its presentation.
Of course, most banks have their own money transfer service included in their mobile apps, such as Chase’s QuickPay. These services could be rebranded into a single platform, but that has not been confirmed.
The united “QuickPay” will allow customers to send money to each other for free and in real-time, even if they don’t use the same bank. In other words, friends can send money to each if they have accounts in different banks included in the service.
The new service among the banks will reportedly utilized the fraud-detection service Early Warnings Systems and the money-transfer service ClearXchange, which are jointly owned by the banks in the consortium.
Venmo was acquired by PayPal acquired via its $800 million purchase of Braintree in 2013. Venmo processed $7.5 billion in transactions in 2015, and $1 billion in January 2016 alone.