Obopay has been looking to find a way to improve its US P2P payment service. Tied to the ACH network, the speed of the transaction can slow to days. By linking to the STAR EFT network, things can pick up. The challenge here will be for the consumer to know whether or not their bank is, in fact, on the STAR network and if it subscribes to the START Expedited Transfer Service. Easy access and ubiquity of electronic P2P systems are two important performance criteria. Particularly in the mobile space, “virality” is highly desirable. It doesn’t look like this announcement moves us very far along that dimension.
Obopay, the pioneer in mobile money solutions, today announced an agreement with the STAR Network through which Obopay will incorporate the STAR Expedited Transfer Service – which enables real-time transfers between STAR accounts – into its own Mobile Money for Banks offering. STAR is a First Data company and a leading debit network.
The agreement enables Obopay to offer the industry’s only mobile money transfer solution with real-time capabilities that places the demand deposit account at the center of the transaction. The STAR Network offers transaction speeds that are not possible with Automated Clearing House (ACH) transfers, which often take several days to process. With this service, financial institutions can offer a fast, secure and convenient way for their customers and members to send and receive money using their mobile phones.
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