October 26, 2010

On PayPal's blog today, Dan Schatt, general manager of financial innovations, announced that the company has reached an agreement with USAA Federal Savings Bank through which it will start developing a person to person payment solution for USAA members, and that USAA Bank plans to deliver the app in 2011. USAA members will be able to pay almost anyone with an e-mail address or mobile phone number from their mobile phone. Rather than requiring a PayPal account, this service will let USAA members pay through their USAA Bank account.

Schatt listed a number of use cases: sending money to kids in college, paying a babysitter or friend, contributing to the local PTA.

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