Fiserv to offer new personal payment option to member banks next year

Brookfield-based Fiserv Inc., announced last week that it will release a new personal payment service in the first half of 2010 that will allow individuals to send or receive money person-to-person using their existing online banking relationship. When released, the service will be available to the more than 3,100 financial institutions using Fiserv’s online payment network.
“Consumers are showing an increasing preference for managing their finances online, and it is natural for them to turn to their trusted financial institution for any payment service, whether it is a bill payment or a personal payment,” said Erich Litch, senior vice president and general manager of consumer services with Fiserv. “The personal payments service from Fiserv enables banks and credit unions to deliver an innovative online financial management tool, providing users with the convenient capability to pay anyone and deepening their relationship with the institution.”
The service will allow customers to send money through their existing banking relationship, eliminating the need to share account information with a third party and giving customers improved security and greater convenience. Customers will be able to send money to anyone they know, using only their email address or mobile phone number.
Payments will be deposited directly into the recipient’s account and confirmation of payment will be sent to the recipient’s e-mail address or mobile number.
A recent Fiserv survey of more than 1,000 consumers found significant interest in personal payments. Three out of four respondents would prefer a service offered by their financial institution, and 83 percent of respondents say it’s important for money to be deposited directly into a recipient’s bank account, as opposed to other methods.
“P2P payments include repaying other consumers, moving funds between accounts at different banks, supporting family members, and paying for informal purchases or services rendered,” said Andy Schmidt, research director, Global Payments, at industry analyst firm TowerGroup. “Consumers need simple, low-cost, and convenient alternatives to checks with flexible funds accessibility.”
Payments will be securely processed through Fiserv’s industry leading online payment network, leveraging the FraudNetTM automated fraud detection system to detect and prevent fraudulent transactions.
“Personal payment services have appeal for consumers who are seeking quick and seamless financial management tools,” Litch said. “Financial institutions that offer the personal payments service from Fiserv will have another offering to boost satisfaction and loyalty among their users, and could attract new consumers to their institution as well.”