Big Banks Try to Steal PayPal's Thunder
Google meanwhile to let you pay with swipe of the phone
By Kevin Spak, Newser User
Posted May 25, 2011 1:30 PM CDT
In this April 21, 2008 file photo, a sign for a Bank of America branch is shown in Charlotte, N.C.   (AP Photo/Chuck Burton, File)

(Newser) – Big changes could be afoot in the way Americans pay for stuff. Bank of America, JPMorgan Chase, and Wells Fargo are introducing a new service that will let customers easily transfer money from their checking account to someone else’s, the Wall Street Journal reports. The banks are hoping the service competes with eBay’s popular PayPal service, which now handles a lot of the transactions people used to use checks for. The payments could even be made on the go from a smart phone.

Google, meanwhile, will tomorrow announce a system that will let some Android users swipe their phones at retail registers to make payments or claim discounts from sites like Groupon. For now it’ll only be available on some Sprint phones and at select retailers with the right tech, but it’s expected to expand—and Apple’s planning something similar, Bloomberg reports. Both technologies could pose a threat to the bundles of fees banks pull in from retailers.

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Showing 3 of 5 comments
Sir_Cancelout
May 25, 2011 5:05 PM CDT
It's the same old story, isn't it!? The smaller, innovative entrepreneur gets gobbled up by the "Big Boys"--and when it happens it generally means that the average consumer gets "hosed" in the long run! When will it stop!? President Jimmy Carter was the last Chief Executive to invoke the Sherman Anti-Trust Act and to give the FTC "teeth" to address unfair trade practices and "level the playing field." Sad to say, that all came to a screeching halt with the election of Reagan and the ascendancy of conservatives and Republicans to power in 1980.
Yourself
May 25, 2011 3:03 PM CDT
"are introducing a new service that will let customers easily transfer money from their checking account to someone else’s" also known as a wire transfer... and they charge $15 for those right now (at least my bank does).. bunch of thiefs, charging so much for an ELECTRONIC service that no human being even needs to be involved at other then myself, since i can do it online. It's theft... Remember, the best way to rob a bank, is to OWN ONE!
SC23
May 25, 2011 2:23 PM CDT
From a seller/receiver of cash perspective.. I use paypal A LOT. It is my primary billing/receivables mechanism for my web biz. If you want to take a bite out of paypal, reduce the damn fees. A $50 invoice turns out to be something like $47.50 by the time it hits my bank. Google checkout is worse. Merchant accounts directly from banks are generally not supported by online software like my web billing software so using anyone else is pretty moot from the sellers end unless they get a special deal from the merchant account.