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Health & Fitness

New Company a Rival to Paypal?

Three major banks have created a new system similar to Paypal. It's a quick, efficient way to transfer money to anyone, anywhere-and it has no fees. At least for now.

If you have ever purchased something online, from Amazon, Craigslist or Ebay, you know about Paypal. It's a simple, safe approach to purchasing or selling something to someone or a business you don't know very well.

But, like most good things, there are fees involved. Now, there appears to be a new rival in the making called clearXchange, spearheaded by Bank of America, Chase and Wells Fargo. The system will actually be managed by a separate entity, but they have gotten the process started.

Basically, the program allows you to transfer money to anyone, just by using their name and phone number. You have to belong to one of the banks offering the program, you log into your own accounts to access the system, but they expect more institutions to join the program soon. Currently, the program is offered with no fees attached.

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So, do we see this as another way for the banks to capitalize on ways to charge future fees, or are they seeking market share in an industry where customers seek fast, safe and effective ways to make purchases on the internet? Only time will tell....

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