NYCE offers P2P payments service

Payments network NYCE will begin offering person-to-person (P2P) payments to its 3,000 financial institution clients.The Popmoney P2P system has been developed by electronic money transfer solution provider CashEdge, and enables consumers to submit payments to other consumers or businesses via their mobile or online bank accounts. The rapid consumer adoption of smartphones which will reach 50 percent of cell phone owners by the end of 2012 will spur demand for electronic money movement capabilities between consumers, and not just between consumers and businesses, said Ron Shevlin, senior analyst with research firm Aite Group. Consumers want to do business with financial institutions that make their financial lives easy to manage. P2P payments will become a must-have capability for banks.