End of Paypal

[final]

NEW YORK (CNNMoney) -- Three major banks have formed a joint streamlined transfer system in an attempt to rival PayPal.

Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) announced Wednesday that they will launch a system, called clearXchange, allowing customers to transfer money electronically through the use of mobile phone numbers or email addresses.

The systems could replace other electronic transfer systems that require checking accounts and routing numbers, the banks said.

"We want our customers to be able to easily send money to anyone without having to establish a new account outside their primary bank," said Mike Kennedy, head of payments strategy at Wells Fargo, in a statement. "All our customers need to know is the e-mail address or mobile number of a friend or family members, and we will take care of the rest utilizing clearXchange."

ClearXchange wasn't on board yet, as of early Wednesday, when accessing the company's website brought up the message: "Future home of something quite cool."

http://money.cnn.com/2011/05/25/news/companies/banks_paypal_clearxchange/index.htm?iid=HP_River

Visa and Mastercard are also launching their online payment services.

[Romulus]

And what if folks don't use BofA, Chase or Wells?

This isn't the end of Paypal, they just have some hefty competition, which is good.

I will stick with Paypal, thanks.

[HOLLYWOOD]

SO antitrust... I don't know where to begin. Let's see, the DOJ just filed suit less than 48hrs ago against H&R Block for perusing to acquire TaxACT maker. Watcha want to bet, nothing comes of the Banksters new monopoly with the DOJ/SEC? Place your bets... hmm, should be a good one on InTrade

Anything with the TBTF Banks is "PRE-APPROVED" even if it's: Antitrust/Price Fixing/RICO violations...

DOJ Files Suit To Stop H&R Block From Buying TaxACT Maker

http://online.wsj.com/article/BT-CO-20110523-707663.html

PS: H&R Block is not a TBTF bank

[Romulus]

Good point Hollywood..rep

Sounds like the Federal Reserve is getting into online money exchanging.

[Kludge]

There have always been other competitors in the market - Google Checkout, Moneybookers, OboPay, Amazon Checkout... But because they aren't the "major player," many companies aren't willing to code them into the payment process and accept the added hassle of allowing additional services when they're hardly used.

Not having to set up an account to receive payment (which I'm guessing isn't really true -- they probably can have funds set up in a temp account and then have to register to get the money into their bank account) probably isn't enough of a benefit for people to switch from Paypal they've probably used for 5+ years. What will be required is significantly lower fees (probably not too difficult), competitive buyer protection, and better tools/webGUI than Paypal offers (which will take years of development).

[trey4sports]

Paypal is great. Id much rather support Peter Thiel as opposed to the others...

[Romulus]

True.. there's even Yahoo wallet. But everyone flocks to the strongest player. Its why Ebay has no real competition, or even Craigslist when it comes to being local.

AFAIK, the Ebay/Paypal thing is independent.

I remember when Microsoft was trying to force a takeover of Yahoo too...

[Dustancostine]

also Venmo, you can transfer money by app phone to phone www.venmo.com

[squarepusher]

competition is great, bring it

[V3n]

I stopped liking Paypal when they froze the Wikileaks account. Can't say I like BoA, Chase or Wells Fargo any better!! Guess with that company PayPal becomes the lesser of the evils.

[fisharmor]

NEW YORK (CNNMoney) -- Three major banks have formed a joint streamlined transfer system in an attempt to rival PayPal.

Banks? The ones that rape you without grease in the good years, when there aren't even any housing crises or illegal repossessions going on?

This is how this is going to go down, folks: this system is going to fail to compete, and when it fails, that's when we're "going to need better regulation".
The regulation bills that get crafted are going to target PayPal specifically, and then the shitty half-system that the banks shoestringed together is going to be all we have.

[final]

competition is great, bring it
Bank-wires are best for payments above $1000 because the fee is $20 for any amount. Wire transfer money is deposited in your bank account within hours.

If you have big money in your Paypal accounts, start withdrawing your money because Paypal has a bad habit of freezing accounts. They may shut down and run away. Only keep minimum balance in your Paypal accounts. Be on the safe side.

[Cleaner44]

Good point Hollywood..rep

Sounds like the Federal Reserve is getting into online money exchanging.

Exactly what I was thinking.

[JohnMeridith]

paypal is anti gun

[final]

Paypal ultimately needs banks to transfer customers money to their banks account. You add bank accounts to your Paypal accounts to deposit funds and withdraw funds.

You need Visa and Mastercard to add funds to your Paypal accounts. If you withdraw paypal funds by debit card then also you need banks.

Bank-Wire transfers are best for payments above $1000 since fee is $20 for any amount.

[Vessol]

I still like Paypal and will stick to using it.

[AZKing]

Paypal is great. Id much rather support Peter Thiel as opposed to the others...

Supposedly Thiel is a Bilderberger...

Anyway, I use PayPal as my company's main payment tool. Personally, I dislike them. Their fees are too high and although I don't use it often, their customer support is a bunch of arses. Easily the most unfriendly customer service I have ever talked to.

Unfortunately, if you don't accept PayPal payments as an online business, you have no chance of ever succeeding.

PayPal has established control of the market because of feeBay -- they're the same company. What's really bad is that feeBay users have to pay fees to PayPal and eBay. It's basically a scam if I had my say, but it's free market I guess.

[cornell]

I am shocked that everyone here is such a fan of Paypal. They are known for repeatedly freezing people's accounts and holding onto money for months during "investigations." Just go read some of the stories on paypalsucks.com

I am happy to see some serious competition as right now they have a virtual monopoly in online payments between people.

[Vessol]

Supposedly Thiel is a Bilderberger...

Anyway, I use PayPal as my company's main payment tool. Personally, I dislike them. Their fees are too high and although I don't use it often, their customer support is a bunch of arses. Easily the most unfriendly customer service I have ever talked to.

Unfortunately, if you don't accept PayPal payments as an online business, you have no chance of ever succeeding.

PayPal has established control of the market because of feeBay -- they're the same company. What's really bad is that feeBay users have to pay fees to PayPal and eBay. It's basically a scam if I had my say, but it's free market I guess.

There's nothing stopping you from trying to get some venture money and starting your own competition. That's the beautiful thing about the free market. If they are truly bothering enough people as to which they would desire a new service, then competition will arise. As it stands now, they are providing a service that most enjoy.

[puppetmaster]

bring on the competitors

[final]

I am happy to see some serious competition as right now they have a virtual monopoly in online payments between people.
Consumers and buyers are Kings when there is serious competition. Monopoly is bad and expensive for buyers in any industry.

Monopoly had gone to paypal's head that is the reason there are thousands of horror stories for paypal posted on the internet.

[Vessol]

Consumers and buyers are Kings when there is serious competition. Monopoly is bad and expensive for buyers in any industry.

Monopoly had gone to paypal's head that is the reason there are thousands of horror stories for paypal posted on the internet.

Paypal does not have a monopoly.

[AZKing]

There's nothing stopping you from trying to get some venture money and starting your own competition. That's the beautiful thing about the free market. If they are truly bothering enough people as to which they would desire a new service, then competition will arise. As it stands now, they are providing a service that most enjoy.

I'm certainly not debating that, though I have no interest in doing so. I applaud any company that wants to try to compete with the eBay/PayPal/BillmeLater "cartel", for lack of a better term.

By the way, PayPal and eBay are going to take a massive hit from the new tax laws that got passed in the economic recovery bill. The bill regulates that PayPal must report any users to the IRS if they meet either:

1. receive more than $20,000 in payment volume in a single year; or
2. receive more than 200 payments in a single year.

They'll lose a lot of small time sellers who just sell little trinckets for barely any profit and as such don't report it to the IRS.

[final]

Paypal does not have a monopoly.
But paypal thinks they have a monopoly. Monopoly has gone to paypal's head.

[Carehn]

Am I the only one that does not see the problem in this. So paypal will have a little comp? Whats the big deal? Its good for the consumer and no one else.

[cindy25]

Paypal has monopoly with Ebay, so they will not end.

I wish a non-USA group would develop a worldwide system to rival Paypal and Ebay

[nocompromises]

And what if folks don't use BofA, Chase or Wells?

This isn't the end of Paypal, they just have some hefty competition, which is good.

I will stick with Paypal, thanks.

I'll stick with cash.

[final]

By the way, PayPal and eBay are going to take a massive hit

2. receive more than 200 payments in a single year.
So if you receive 200 payments for $100 each you have to report is to the IRS. What is the purchasing power of $100 when there is high inflation worldwide.

I think $10,000 deposits to bank accounts have to be reported to IRS.