, July 2, 2010 6:09 am
I really can’t keep up with all the changes going on out there in the world of finances (I know…it’s my job…). In the last several months, there have been “peer-to-peer payment services” popping up all around the country. And, if you can believe this, banks are in the forefront of this. Basically, a business owner, rather than write a check for a good or service, is now able to transfer money to a customer’s account. All you need is a mobile phone number and an email address. The transaction occurs directly from one bank to another. Why didn’t I think of this?
Five years ago, this probably wouldn’t have been possible. But as consumers and businesses become more comfortable paying bills online or making purchases online, I guess this is just the natural next step. Javelin Research reports that nearly 44% (38 million) of the 86 million households online made at least one online P2P fund transfer in 2009. That’s up 27% from 2008. This is fast, direct and safe. What’s not to love about it?
If a bank offers the P2P system, a business owner can login to his/her bank account, input an email address and send a message to the recipient before transferring the money. The transfer can be done online or via a browser-enabled mobile phone. The recipient then goes online to claim the money which is automatically deposited into his/her account usually within 24 hours. So, no more writing checks, buying stamps, dropping in the P. O. box and waiting for it to clear. If your cash flow tends to be tight, this isn’t for the faint of heart. The dough moves quickly, so just make sure you’ve got enough to cover the payment in your bank account. Until next time, have a great July 4th holiday and here’s to good planning!