The MoneySend service evolved from technology originally developed by Obopay for its own online cash transfer program. According to American Banker, few consumers wanted to set up dedicated funding accounts on Obopay's platform. However, blending the existing technology with existing MasterCard accounts could accelerate adoption of the MoneySend service.
Currently, competing systems require use of the same clearinghouse system used for processing checks or require users to park cash in an intermediate account. MoneySend fees range from free introductory trial transactions to standard rates of up to 2% per transaction. Currently, only one bank supports the platform, but MasterCard officials expressed optimism that more credit card issuers would sign on soon.
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Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.