JPMorgan Chase has officially made its way onto the clearXchange payments network, a multi-bank P2P transfer network — a group that Chase helped form four years ago.
The other owner-members of the clearXchange digital payments network include U.S. Bank, Wells Fargo, Bank of America and Capital One. But by having Chase go live on the network, it now brings in a larger chunk of payment consumers onto the network, according to a report on the news from Payments Source. But despite the four years it took Chase to actually launch with clearXchange, Mike Kennedy, CEO of clearXchange, said in an interview that the company has backed the network since its inception. He also noted that Chase will add its 38 million online banking customers and 20 million mobile banking customers to the network.
“They’ve always been supportive of the network. They’ve attended all of the board meetings and advisory meetings,” he said. “Chase’s addition will benefit us both for our historical P2P product and newer products that we launched last year and going forward.”
And Chase’s addition also marks an important step for the network.
“Chase’s addition gives clearXchange much greater potential,” said Andy Schmidt, principal executive advisor for CEB TowerGroup. “When you have the top ACH banks all participating, you certainly have much greater pool to draw from.”
Overall, clearXchange is the largest bank-focused P2P network reaching 100 million online banking customers and 50 million mobile customers.
“We formed clearXchange based on customer feedback,” Kennedy told MPD CEO Karen Webster in an interview. “Customers say how much they liked their loan and deposit products; how much they liked the online and mobile balance checking and paying their bills online. What they also wanted to know was why, if they are able to pay AT&T with their bank account, they couldn’t also pay their gardener or their friend the same way.”
In other mobile banking news for Chase this week, the company announced it has embraced TouchID and has added the biometric login as an option on its iPhone app, With this new upgrade, Chase customers will be asked upon login if that customer would like to add TouchID. A password is still needed for some further aspects of the app, but for many, the ease of TouchID will be a quicker mode to login to the most basic banking essentials.
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