MasterCard (MA) Tackles eBay's PayPal; Announces New App for iPhone, iPad, 'MoneySend'
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MasterCard (NYSE: MA) announced Thursday that it will be releasing a new application for the Apple (NASDAQ: AAPL) iPhone and iPad that will seek to rival eBay’s (NASDAQ: EBAY) PayPal money-transfer service.
The MasterCard service, called MoneySend, will allow users in the U.S. to send or request money from banks or credit unions through mobile devices. The users will be able to use an existing MasterCard account or a bank account.
“MasterCard MoneySend allows users to ‘Send,’ ‘Pay’ or ‘Request Funds’ for a wide range of reasons,” said Joshua Peirez, Chief Innovation Officer of MasterCard Worldwide. “With MoneySend, users avoid the hassle of making payments with cash, check or money orders and collecting funds is as simple as a text message with the ‘Request Funds’ feature of the app.”
The company said that banks may charge the sender a small fee for sending money directly from an account, while the receiver will not face any additional fees. Users will be limited to sending $2,500 per calendar month using MoneySend.
In regards to the security risks in storing personal and financial information on a mobile device that could easily be lost, the company assured that vital information is never stored on the actual iPhone or iPad.
This is the second attempt by MasterCard to open itself up to the mobile payments space, as it announced a plan last week to open its credit cards payment platform to developers who wish to build online and mobile applications. Even if the service receives strong reviews from users, it will be difficult for MasterCard to gain on PayPal, which has a massive presence in the industry.
Shares of MasterCard are up 56 cents per share to $201.58 on Thursday.
The MasterCard service, called MoneySend, will allow users in the U.S. to send or request money from banks or credit unions through mobile devices. The users will be able to use an existing MasterCard account or a bank account.
“MasterCard MoneySend allows users to ‘Send,’ ‘Pay’ or ‘Request Funds’ for a wide range of reasons,” said Joshua Peirez, Chief Innovation Officer of MasterCard Worldwide. “With MoneySend, users avoid the hassle of making payments with cash, check or money orders and collecting funds is as simple as a text message with the ‘Request Funds’ feature of the app.”
The company said that banks may charge the sender a small fee for sending money directly from an account, while the receiver will not face any additional fees. Users will be limited to sending $2,500 per calendar month using MoneySend.
In regards to the security risks in storing personal and financial information on a mobile device that could easily be lost, the company assured that vital information is never stored on the actual iPhone or iPad.
This is the second attempt by MasterCard to open itself up to the mobile payments space, as it announced a plan last week to open its credit cards payment platform to developers who wish to build online and mobile applications. Even if the service receives strong reviews from users, it will be difficult for MasterCard to gain on PayPal, which has a massive presence in the industry.
Shares of MasterCard are up 56 cents per share to $201.58 on Thursday.
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