Wells Fargo, Chase, Bank of America jointly launch PayPal rival

The clearXchange service is now available to partners and will be rolled out nationally at an undisclosed time

Three top U.S. banks are collaborating on a service that will allow the transfer of funds by simply logging in to a personal online bank account and entering the name and mobile phone number of the person receiving the money.

A direct assault on person-to-person cash transfer industry leader PayPal, the service will be rolled out by Bank of America, JPMorgan Chase and Wells Fargo, which formed a new venture called clearXchange to create the product.

The called clearXchange service, said to be the first bank-owned product of its kind, was made available to partner businesses yesterday. The banks dod not say when the service will be generally available.

Banks customers will be able to move funds directly from their existing checking accounts by using an email address or mobile number -- listing checking account and routing numbers are not necessary. The service will eventually be rolled out nationally and there are plans over time to expand it to include other financial institutions and endpoints.

"This is an innovative game-changer in electronic payments," Mike Kennedy, head of payments strategy at Wells Fargo, said in a statement. "We want our customers to be able to easily send money to anyone without having to establish a new account outside their primary bank."

Financial terms of the three-bank partnership were not disclosed, but clearXchange is to be located in Charlotte, N.C., where Bank of America is headquartered.

"By creating a utility like clearXchange, we are able to meet the needs of our customers and differentiate our capabilities from other offerings in the marketplace," David Owen, eCommerce, Claims and Fraud Executive at Bank of America, said in a statement.

Lucas Mearian covers storage, disaster recovery and business continuity, financial services infrastructure and health care IT for Computerworld. Follow Lucas on Twitter at @lucasmearian, or subscribe to Lucas's RSS feed . His e-mail address is lmearian@computerworld.com.

Read more about financial services in Computerworld's Financial Services Topic Center.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetfinancee-commerceFinancial Servicespaypalindustry verticalse-businessWeb 2.0 and Web AppsBank of AmericaJPMorgan ChaseWells Fargo

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Lucas Mearian

Lucas Mearian

Computerworld (US)
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?