CertaPay

CertaPay’s Email Money Transfer system is used by five major banks in Canada: Bank of Nova Scotia, TD Canada Trust, CIBC, Bank of Montreal, and Desjardin Group (notably absent, Royal Bank, an early backer of CashEdge).

Users have the ability to send money to anyone with an email address and Canadian bank account. Users are required to use a security question that only the intended recipient would know. An optional personal message can also be included. The emailed payment notification includes a hyperlink to the recipient’s bank of choice to deposit the funds. The sender’s account is debited when the email is sent, and the recipient has immediate access to the funds after depositing to their bank. Total system wide volumes have not been disclosed, but in June 2002, Toronto Dominion alone reported 40,000 transactions.

CertaPay is working with ACI Worldwide, MasterCard, and most recently, NYCE .

Concord EFS (Star System)

Memphis-based Concord EFS, which acquired the Star System ATM, switch in Feb. 2001, is moving aggressively into money transfers with two major initiatives. The first is an ATM-to-ATM money transfer program using the payment infrastructure of Travelers Express’s MoneyGram unit. Customers of participating financial institutions will be able to send Star MoneyGrams to anyone in the country with physical access to one of Star’s 224,000 ATMs. Recipients will access the funds using a stored value card.

The system is being piloted this fall at a large Northeast bank. Full rollout is expected in 2003 if all goes well. Eventually, the service is expected to be expanded internationally and to incorporate sending/pickup at MoneyGram branch agent offices.

The second initiative is more far-reaching and seemingly closer to fruition. Star is upgrading its network to be able to process real-time transfers between any two accounts hooked to it. While members will set their own product parameters, it will be possible for real-time transfers between different individuals (P2P), among individual’s own accounts (me2me), or from consumers to businesses (bill payments). Transactions can be initiated online, via telephone, ATM, or even in-branch.

The company realizes that in order for customers to get value from the system it needs to have wide participation, so it is mandating that members be able to RECEIVE interbank transfers by April 1, 2003.