Fiserv, Inc (NASDAQ: FISV) has announced a new peer to peer payments service which will be available to banks and credit unions, called ZashPay, which will allow users to send each other electronic payments without the use of an intermediary such as Ebay’s PayPal (NASDAQ: EBAY).
The service will likely not compete with peer to peer lending companies such as Prosper.com or Lending Club, but rather will likely serve as a PayPal and Google Checkout competitor for person to person transactions.
In its press release, Fiserv wrote that “With ZashPay, consumers will be able to send money to anyone they know using only an e-mail address or mobile phone number. The payment will be deducted directly from the sender’s banking account and deposited directly into the recipient’s account in as little as one business day, utilizing the same secure processes as a typical online banking transaction.”
Fiserv will also launch a public ZashPay website for individuals whose financial institutions do not participate in the service. Fiserv says that it will launch the service in Summer 2010.
“Consumers are looking for faster and easier ways to send and receive money among their friends, family, neighbors and colleagues, yet current electronic payment options are often a hassle and too slow,” said Erich Litch, senior vice president and general manager, Consumer Services, Fiserv.
“ZashPay will be accessible through the online banking sites of participating banks and credit unions and will use consumers’ existing financial accounts rather than require them to sign up for and fund a third party account. Consumers have told us that they would prefer to send and receive money directly through their existing online accounts, and ZashPay makes that possible.”
