Paypal moves to offer traditional banking services

Paypal expands its feature set by offering basic traditional banking services on top of it existing digital wallet.

These new services include Federal Deposit Insurance Corp. insurance for balances up to government-set limits, debit cards for ATM cash withdrawals, employer direct-deposit for earnings, and funds top-up through taking a picture of a paper check, reports The Wallstreet Journal.

Unlike traditional banks, which pay interest on balances, Paypal will charge 1 percent for paper check photo deposits and added fees for ATM withdrawals.

The goal of the company is not to replace traditional banks. Rather it offers an option to people with small balances, which is mostly overlooked by traditional banking systems.

“If you don’t have a bank account, you can’t take an Uber ride, can’t stay in a room on Airbnb,” said Paypal chief operating officer Bill Ready.

To build this system, Paypal worked with several small banks, which will largely work behind the scenes. Ready said this allows the company to get products to customers faster than banks.  Alfred Bayle /ra

source: technology.inquirer.net

BofA Unveils Teller Assist - Video Chatting ATMs

ATMs are a quick and easy way for customers to take out cash, check their balance and deposit checks without waiting in line to speak to a teller. But there are times when customers would prefer a little human interaction.

Now Bank of America (BAC) customers in Boston can have both. The bank is installing Teller Assist, a video chat service, in its ATMs this month. BofA expects to expand the services to other parts of the country throughout the year.

BofA shares rose 1% on the stock market today.


The new ATMs will have video chat features that can be used from 7 a.m. to 10 p.m. Monday through Friday, and 8 a.m. to 5 p.m. during the weekends.

"We know that customers want to bank on their schedule — not ours — so we are constantly looking at how to deliver more convenient banking options to them," said Katy Knox, retail banking and distribution executive in a statement.

The upgraded machines will offer support in English and Spanish and cash checks for an exact amount. The ATMs will be able to withdrawal cash in a variety of denominations: $1, $5, $20 and $100. Future functions include splitting a deposit into two or more accounts and making loan or credit card payments.

The Banks-Money Center is ranked No. 137 out of the 197 industry groups IBD tracks.

source:  news.investors.com