U.S. Bank Partners with Western Union to Offer Mobile Money TransfersBanker Resource
September 18, 2013 — 1,195 views
In reaction to a world where many people are moving cash from one location to another, US Bank has decided to partner with the big money transferring company, Western Union, in order to enable peer to peer payments with a mobile banking app. The Minneapolis Bank has stated that people will be able to move cash to up 500,000 locations in 200 countries with the push of a button. Instead of having to go to a bank or make an online transaction, people will be able to transfer cash from different locations on the go through their mobile phones.
Competition is Becoming Stiff
The reason why US bank is planning on such collaboration is to match the other big companies that are currently flourishing through online mobile payments such as PayPal. Instead of having to go through different/other networks and use other competitors' tools, US bank wants to have their customers make their transactions from within the bank itself. Initially the limits for transferring cash from person to person is a minimum of $200 and a maximum of $1,000, although there will be revisions with regard to these limitations.
Evolution of P2P Transactions
One of the key differences that was pointed out by the US Bank's digital money movement manager is that there are now cash payouts instead of digital ones. This means that people who are transferring money from one place to another will do so through the bank wherein the receiver will get the cash in hand instead of it being transferred to a bank account. This connection via Western Union will enable customers to transfer live money from person to person, thus making it more convenient for their customers.
How Does Future Look?
US Bank believes that creating a mobile app will greatly help its customers from spending a lot of time in transition while waiting for the transfer to come through. This app will ensure that customers will be able to send money to any person from any mobile device. The Western Union feature within this app took a year in development and the online banking part alone took about two years to implement. They have already begun piloting the app, and the progress so far, is looking good. The Bank is still trying to work out the kinks in the app's system as it is looking at making this process even faster so that the funds that are transferred are available on the same day.