B of A, US Bank Launch Real-Time P2P Payments
March 10, 2016
Bank of America and U.S. Bank yesterday launched P2P real-time mobile transactions. Early Warning, a Scottsdale, Ariz.-based antifraud provider owned by the two banks (as well as other credit-card issuers JPMorgan Chase, Wells Fargo, Capital One and BB&T), will manage the clearXchange payments network that enables the payments for the banks. Early Warning acquired clearXchange last October so the major banks could begin to compete against Silicon Valley fintech companies like PayPal, Facebook, Square and others that have been more innovative in the P2P space than banks.
“At Early Warning, our vision of faster payments is an ecosystem built by financial institutions to provide consumers the ultimate in convenience, flexibility and safety,” said Paul Finch, CEO of Early Warning. “Today, I am pleased to see that vision become a reality with Bank of America and U.S. Bank. We are proud to partner with these forward-thinking institutions as we bring our real-time payment solutions to consumers nationwide.”
Capital One told Reuters it would integrate the platform and begin offering P2P payments “later this year.” Presumably the rest of Early Warning’s ownership consortium will follow.