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Category: Banks

Instant bank transfers are coming to PayPal and Venmo

 PayPal announced this morning a plan to speed up money transfers between its service, Venmo and users’ bank accounts for those with supported MasterCard and Visa debit cards. This new “instant transfers” service will be available at a rate of $0.25 per transaction, and will deliver funds in a matter of minutes, instead of the day or so it typically takes when using PayPal… Read More
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Klarna gets a full banking license, gears up to go beyond financing payments

 After Anders Holch Povlsen and his firm Brightfolk bought up a stake of at least $225 million in Klarna earlier this month, today the profitable Swedish payments startup, now valued at over $2.25 billion, is stepping up its game. Klarna has announced that it has picked up a full banking license from Finansinspektionen, the Swedish Financial Supervisory Authority. The license will give… Read More
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Zelle, the real-time Venmo competitor backed by over 30 U.S. banks, arrives this month

 The U.S. banking industry’s answer to Venmo has now arrived. Starting this month, a new, person-to-person payments network called Zelle will roll out to the over 86 million mobile banking customers here in the U.S., promising a faster form of digital payments compared with apps like PayPal, Venmo, Square Cash, and others. Instead of transfers taking place overnight or after a couple of… Read More
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Current launches a Visa debit card for kids that parents control with an app

 A startup called Current is today launching a new way for parents to dole out allowances to their kids: with an app. The company offers a Visa debit card that would allow teenagers to shop in stores or online using funds from their own bank account, which is funded through allowance money that mom or dad transfers from their own bank account. Parents can use the accompanying mobile app to… Read More
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UK banks finally learn how to clear cheques in a day

Despite a huge rise in online and contactless payments, cheques are still ridiculously popular. In 2016 alone, Brits sent over 477 million of them, making their recipients wait up to five days to get their hands on the money. For decades, the Cheque and Credit Clearing Company has facilitated this delay by requiring banks to send them to a clearing centre -- which involves a system of checking, verifying and transportation around the country -- but that wait will soon be reduced to one day under new rules unveiled today.

From October 2017, banks will be able to utilise the Cheque and Credit Clearing Company's new industry-wide imaging system. Customers will pay them into their bank as usual but banks will swap images of the cheques instead of popping them in the post. "The new system will mean that if they pay in a cheque on a weekday they will be able to withdraw the funds by 23.59 on the next weekday (excluding bank holidays) at the latest," said the organisation in a statement.

Some banks, including Barclays and Lloyds, have already trialled a similar technology in their apps. Customers can access funds (limited to around £500) by taking a photo of a cheque using their smartphone. However, this was limited to customers with the same bank.

The Cheque and Credit Clearing Company notes that while some banks and building societies will go live from October 30th, it will take until "the second half of 2018" for all UK institutions to get on board. The move will also put an end to the practice of "floating", a process where customers use the five-day clearing period to get their hands on the intended funds before they're debited from their account.

Source: Cheque and Credit Clearing Company

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