MasterCard (News - Alert)'s new payment service will make sending money between individuals almost as fast and easy as if they were in the same room handing dollar bills between one another.
It is called MasterCard Send and made its debut this week as a personal payment service that will provide (nearly) instant transmission of funds between users both nationally and internationally. It will allow users to reach into their debit card accounts, even if they aren't MasterCard-owned accounts, and move money that will be accessible to receivers in as little as 30 minutes.
Ed McLaughlin, the chief emerging payments officer at MasterCard, commented on how Send will try to make instant payments easier for both consumers and businesses.
“Through MasterCard Send, we have enabled a breakthrough solution that takes the pain out of the system, provides faster clearing of payments, and delivers a better user experience for senders and receivers alike,” McLaughlin said. “MasterCard Send is addressing a real need that exists in today’s digital world to enable consumers, businesses, governments, and more to have a safe, simple, and secure way to transfer and receive funds quickly.”
Although McLaughlin said Send will be able to address the needs of consumers, MasterCard is focusing primarily on enterprise use of the service. Barb King, a group head in the MasterCard Payment Systems Integrity Group, spoke to PYMNTS.com and noted that the service could be optimal for settling insurance claims and completing ticket resales.
She also noted that users can think of the service as analogous to any typical debit transaction one might complete today. This should be similar to swiping a card and then choosing the recipient of the money transfer. In any case, she indicated that the overall goal of the Send was to make it efficient to send money between individuals or between businesses and individuals.
MasterCard is reportedly working with a number of U.S. “dispersers” and international governments to make sure that Send will work throughout the U.S. and in many countries across the globe. Payment industries such as banks and payment apps already exist, so MasterCard is simply taking advantage of their presence and using those established entities as the backbone of its service.
This means that security with Send should be as secure as the financial industry itself. The MasterCard front end will sit atop that existing security which is one advantage that consumers and businesses should like from the start.
Although it is yet to be told how well the service will perform, it does appear to have the proper framework in place. MasterCard said it expects the payments market to represent significant growth for the company as the technology becomes more established and populations become more familiar with the service.
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