Visa Personal Payments to enable person-to-person payments through banks, PayPal challengers
Visa is set to roll out its new Personal Payments service in the U.S. that will allow people to send money online directly into Visa accounts or pay one another using PayPal competitors Popmoney and ZashPay.
The Personal Payments system will launch in the U.S. during the second half of the year and allow for person-to-person payments to be made through online banking websites to existing Visa debit, credit or prepaid accounts -- though just which U.S. banks will participate hasn't yet been announced.
Visa's Personal Payments system has been in operation overseas since 2005 at more than 70 banks in countries such as Australia, China, India, Russia and Singapore, company spokesman Jason Michael said.
The U.S. rollout of the system will be the first time that the credit card company gets into the online person-to-person payment business in North America.
PayPal, owned by EBay Inc., is the dominate platform for many online retailers that use person-to-person payments. And Visa's system will challenge PayPal by being compatible with its rivals Popmoney and ZashPay.
Popmoney is run by CashEdge, a New York-based online payment company that handles person-to-person payments, money transfers, account opening and funding, small-business applications and financial account aggregation for banks and credit agencies.
ZashPay is operated by Wisconsin-based Fiserv, which also handles information management and e-commerce systems for banks and other financial institutions.
-- Nathan Olivarez-Giles