MasterCard Send Promises Faster B2B, P2P Payments via Debit (May 21, 2015)
The race to accelerate payments heated up this week with the introduction of MasterCard Send, a new platform enabling the rapid transfer of funds by businesses, merchants, governments, nonprofits and card issuers to consumers via debit network rails. MasterCard customers may send funds that can be received within seconds by any debit card or bank account, easily surpassing the speed of routine ACH transfers, which can take a day or more to settle, the company said.
MasterCard initially is spotlighting domestic B2B use cases for MasterCard Send, including insurance payouts and corporate disbursements, to replace existing claim-payment processes that involve paper checks and vouchers. Berkshire Hathaway Travel Protection and FreeShipping.com are among the first businesses using the new service. Both tout the competitive advantages in getting cash payouts and insurance claims to customers quickly and securely. To receive funds, consumers may register any debit card, including non-MasterCard cards, with the entity sending the funds, MasterCard said.
MasterCard plans eventually to make the service available to users outside the U.S. via HomeSend, a joint venture it established in 2013 with eServGlobal and BICS to enable sending remittances to mobile money accounts, payment cards, bank accounts or cash outlets anywhere in the world. MasterCard hasn’t disclosed the cost to businesses integrating the MasterCard Send platform or fees for participants who opt to send funds domestically or outside the U.S.
Observers note the competition for faster payments is intensifying, as industry organizations, including NACHA, continue to push development of same-day ACH payments in the U.S., and the European Central Bank works toward a similar goal in the Eurozone. MasterCard previously introduced Mobile MoneySend, a platform developed with Obopay enabling MasterCard prepaid, credit and debit card issuers to offer domestic P2P payments via mobile devices, joining the growing array of available P2P services.
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