Making an electronic payment might never have been easier than this: Wells Fargo has introduced clearXchange, a person-to-person payments platform that doesn't require the sender to know its recipient's bank account number.
All the sender really needs is the recipient's phone number or email address attached to account. It sounds a lot like PayPal -- just without the middleman. Best of all, the service is free -- at least for now.
The platform actually supports customers of both Wells Fargo and Bank of America. Transfers take up to one business day between Wells Fargo customers and up to three business days between customers of different financial institutions.
But Wells Fargo is touting that it is the first bank to roll out clearXchange on a nationwide basis. The service is available to all Wells Fargo customers with a checking or savings account and who use online banking. Customers can sign up for Send & Receive Money online or via Wells Fargo’s mobile apps.
As with anything that involves financial meeting something electronic, there are going to be questions about security.
But when you think about it, it's a lot more secure just to hand someone (you hopefully trust) your email or phone number so they can give you money rather than an account number, which could be abused in much more dire ways.
Furthermore, Wells Fargo is vouching for the platform with its own money by guaranteeing that all Send & Receive Money (and any other mobile) transactions are covered by Wells Fargo’s Online Security Guarantee.
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