Visa and CashEdge have teamed up to launch a new advancement in the world of money wiring, according to a March 16 report on PR Newswire.
Bank account, Visa credit card
The agreement between Visa, the global payments technology company, and CashEdge Inc., a leading provider of financial transaction services, allows money to be sent electronically between bank accounts and Visa-branded credit cards using Popmoney®, a person-to-person mobile payments service provided by CashEdge. Transactions could be completed on a home computer, a laptop or a smart phone.
There are many possible uses for the new payment system:
- Send money to a student credit card account
- Send money to a friend stranded in a remote place
- Pay a housecleaner, a dogwalker or a babysitter.
- Fund a Visa prepaid credit card
- Pay for goods or services at a flea market
- Accept customer payments over a smart phone
Payments could be made in either direction:
- From bank account to credit card, to replenish a prepaid card or make a payment.
- From credit card to bank account, to pay a vendor or service provider.
Eventually, person-to-person transfers between credit cards and bank accounts could replace verbal promises and IOUs.
How P2P money transfer would work
Customers access their bank or credit union account online, through their computer or cell phone, and opt to transfer money to an eligible Visa credit, debit or prepaid credit card. They simply provide the recipient's cell phone number, e-mail address, or 16-digit Visa card account number. Then either the cash would appear in the recipient's card account ("on the card"), or the recipient would receive a notification asking them to approve the transfer. Once the transfer is approved, the money would become available for use.
The system is scheduled to launch in summer of 2011.