Payments and financial services software solutions provider S1 Corp. (Norcross, Ga.) announced an agreement with PayPal (San Jose, Calif.) to develop and deploy payment solutions directly integrated into online and mobile banking platforms.
Additionally, according to S1, 10 financial institutions have signed with PM Systems Corp., a wholly owned subsidiary of S1, to offer person-to-person (P2P) payments powered by PayPal. The PayPal service allows consumers and businesses to make secure payments directly from their bank accounts to almost anyone with a mobile number or email address around the globe.
"The integration of mobile and online solutions from S1 with the PayPal network continues to reinforce our commitment to help customers move money universally: anytime, anywhere and from any channel worldwide," said Pierre Naude, S1 division president, in a press release.
"S1 is an innovator, offering its financial institutions and customers the ability to use the PayPal network to deliver personal payments from existing accounts with nothing more than a phone number and email address," said Dan Schatt, GM of Financial Innovations, PayPal, in the release. "P2P creates tremendous opportunities for financial institutions to offer valuable, differentiated services to their customers."
The integration with the PayPal solution will allow consumers to quickly send money to almost anyone with a mobile phone or email address by leveraging the PayPal network. In order to send money, the sender needs only to log into online or mobile banking, enter the destination email address or mobile phone number, and transfer the money. If the recipient is one of the 90 million PayPal users, the funds will be deposited instantly for verified accounts. If the recipient does not have a PayPal account, prompts lead them to create one. Financial institutions can tailor pricing for this new offering to generate fee-based revenues.
"We see person-to-person payments as a good opportunity to give our members added convenience and to differentiate our institution in our markets," said Pete Paulson, CEO of S1 customer Corporate America Family Credit Union (Elgin, Ill.). "The integration with PayPal through S1 enables our credit union to meet our goals of providing 24x7 mobile payment services that meet our members' needs."