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Bank transfers as a payment method (2021)

bitsaboutmoney.com

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Re: Bank transfers as a payment method (2021)

#41

Post by 255kb »

smcf wrote: post #35

Didn't get a mention in the article but Singapore's PayNow is magical. Direct bank-to-bank transfers that operate instantly 24/7, and for free. QR code-based so it's not uncommon to pay at retail outlets with this method; some shops will only accept PayNow or cash, because they're free. You can also pay directly to someone's NRIC (national ID number) or mobile number so you don't have to tack in their bank details or…

We have the same here in Luxembourg (name is Payconiq). It starts being accepted a bit everywhere. We scan the QR code with our banking app and it sends the money instantly. Some providers (telcos, electricity, etc.) started putting QR code on their invoice. Very convenient. Otherwise we pay nearly everything by bank transfer.

Re: Bank transfers as a payment method (2021)

#42

Post by laurencerowe »

> The Single Europe Payment Area (SEPA) offers free, instant transactions between European banks. They’re pull based; a user communicates their banking information to a business, which debits the user’s account, rather than the business communicating their banking information to the user in order to send them money.

I think this is something of a simplification since SEPA encompasses multiple types of payment. While Direct Debits are pull based you can also make push based payments from your bank, usually for free.

It's completely normal and safe in Europe to share your bank account number (IBAN) with others so that they can send you money through online banking. This is how I paid my rent (you can setup a recurring payment, kinda like bill pay but instant and without the risk of a physical check potentially being delayed in the mail); settled up with friends for shared expenses; and got paid for freelance consulting (I'd put my IBAN on the invoice.)

Re: Bank transfers as a payment method (2021)

#43

Post by dementik »

spaniard89277 wrote: post #21

I'm sorry SEPA is pull based? IDK in other countries but in Spain is pretty common to use it for push and pull operations. I certainly do, and everyone I know. The only nuisance is that requires an IBAN number and most Banks require a security ritual which is pretty boring. I didn't know that there's high fraud in SEPA either. Whoever tries to charge me, I can block em and contact my bank to make em know I didn't all…

I think article means SEPA Direct Debit.

Re: Bank transfers as a payment method (2021)

#44

Post by lucasfdacunha »

godelski wrote: post #23

I've always wondered why big banks don't implement a lot more technologies, and I guess this gets to some of it. But it does seem like banks would have the incentives to kill services like Venmo and Stripe overnight. Like why are there not clear and straightforward banking APIs that let me create virtual cards and why doesn't my app let me just transfer money directly to my friend's bank account (I get global being a…

Brazil does have a system similar to what you mentioned. It's called PIX (https://www.bcb.gov.br/en/financialstability/pix_en) and it's basically an API that banks and payments systems implements and we use to make instant transfer from/to any bank account in the country. Can also be used to pay for things, most of the card machines that we have in the country today support paying with Pix instead of a Credit/Debit card as well, you read a QR code with your bank app and pay for whetever you're buying (from a big grocery store to a street vendor selling popcorn).

Brazil has a lot of negatives, but I always find amusing that we managed to have a bank system that is light years ahead of the US.

Re: Bank transfers as a payment method (2021)

#45

Post by raincom »

godelski wrote: post #23

I've always wondered why big banks don't implement a lot more technologies, and I guess this gets to some of it. But it does seem like banks would have the incentives to kill services like Venmo and Stripe overnight. Like why are there not clear and straightforward banking APIs that let me create virtual cards and why doesn't my app let me just transfer money directly to my friend's bank account (I get global being a…

I worked for a couple of banks. The older the bank is, the difficult it is to 'implement a lot more technologies'. They have the old COBOL codebase running on mainframes from 70's, then a lot of Java, COBRA interfaces that deal with this ancient, but reliable COBOL in the backend. Who is going to implement these technologies 'without being responsible for failures'? Modern management is all about taking credit for success, but not being responsible for failures. This sets up very bad incentives for any paradigmatic changes underneath.

That's why newer banks without legacy cruft, without a large customer base, can implement better stuff: for instance, Capital One entered retail banking in 2005, so they are better at some stuff.

Re: Bank transfers as a payment method (2021)

#46

Post by crystaln »

One major issue nobody has mentioned: privacy.

Do we really want every payment we make in database where it can be passed around and used to analyze, market, and persecute us?

I was a big fan of MobileCoin the privacy token in Signal because as far is I can tell it’s the best solution out there. They have gotten much traction largely because the feds and banks haven’t let them, however I hope some day some how I can buy groceries without my location and purchase details being sold to every data broker in the world.

Re: Bank transfers as a payment method (2021)

#47

Post by bscphil »

zubairshaik wrote: post #40
godelski wrote: post #23

I've always wondered why big banks don't implement a lot more technologies, and I guess this gets to some of it. But it does seem like banks would have the incentives to kill services like Venmo and Stripe overnight. Like why are there not clear and straightforward banking APIs that let me create virtual cards and why doesn't my app let me just transfer money directly to my friend's bank account (I get global being a…

Plenty of banks are competing with Venmo and Cashapp. They use Zelle[1], it's zero-fee and included in most bank apps already. But it's not intended for business payments like Stripe or PayPal, or Venmo for business. [1] https://www.zellepay.com/get-started

Correct me if this is wrong, but I've read somewhere that Zelle gives you no recourse in the event of fraudulent transfers. This makes me extremely reticent to use it, or even use a bank that provides access to it without a signup process.

Re: Bank transfers as a payment method (2021)

#48

Post by Analemma_ »

godelski wrote: post #23

I've always wondered why big banks don't implement a lot more technologies, and I guess this gets to some of it. But it does seem like banks would have the incentives to kill services like Venmo and Stripe overnight. Like why are there not clear and straightforward banking APIs that let me create virtual cards and why doesn't my app let me just transfer money directly to my friend's bank account (I get global being a…

A lot of it is because they suck at technology, software, and marketing. You may recall that when Apple first announced Apple Pay, a bunch of banks were worried this would lock them out of the loop, and they announced, to no fanfare whatsoever, a competitor called Isis (lol, oops), quickly renamed to CurrentC. It went nowhere and was killed with nobody noticing a few years later.

In the banks' defense, they have to work with absolutely archaic infrastructure like ACH, so maybe once the considerably-improved FedNow takes over they'll have a better shot at building something people actually want.

Re: Bank transfers as a payment method (2021)

#50

Post by melenaboija »

zubairshaik wrote: post #40
godelski wrote: post #23

I've always wondered why big banks don't implement a lot more technologies, and I guess this gets to some of it. But it does seem like banks would have the incentives to kill services like Venmo and Stripe overnight. Like why are there not clear and straightforward banking APIs that let me create virtual cards and why doesn't my app let me just transfer money directly to my friend's bank account (I get global being a…

Plenty of banks are competing with Venmo and Cashapp. They use Zelle[1], it's zero-fee and included in most bank apps already. But it's not intended for business payments like Stripe or PayPal, or Venmo for business. [1] https://www.zellepay.com/get-started

Which comes with big fraud issues and nobody wanting to take the blame
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