S1 Corporation, a provider of payments and financial services software solutions, has entered into an agreement with PayPal to develop and deploy payment solutions directly integrated into online and mobile banking platforms.
To date, ten financial institutions have signed with PM Systems, a wholly owned subsidiary of S1, to offer person-to-person payments powered by PayPal.
The PayPal service allows consumers and businesses to make payments directly from their bank accounts to almost anyone with a mobile number or email address around the globe.
According to S1, 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 to log into online or mobile banking, enter the destination email address or mobile phone number, and transfer the money. If the recipient is a PayPal user, 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.
PayPal GM of financial innovations Dan Schatt said 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.
"P2P creates tremendous opportunities for financial institutions to offer valuable, differentiated services to their customers," Schatt said.