Created in collaboration with Visa and Mastercard, Moov Money lets consumers send and receive funds through their digital banking provider with just an eligible debit card and a trusted mobile phone connection, the company announced Tuesday (Sept. 22).
“Unlike other P2P services that depend on both parties participating in the same app or solution, Moov Money uses the debit card as the payment destination,” Moov said in a news release.
The company cites data from the Federal Reserve Bank of Atlanta showing that 90.5% of American consumers carry a debit card, which gives participating financial institutions broad reach without requiring recipients to download apps or set up new accounts.
The same Fed research also found that no one P2P provider reaches more than 34.6% of U.S. consumers today. Moov says its tool is designed to bridge various apps and solutions by delivering payments to the account associated with eligible Mastercard or Visa debit cards.
“Moving money shouldn’t depend on whether two people use the same app,” said Wade Arnold, CEO of Moov. “Moov Money breaks these restraints, enabling anyone with a debit card to securely pay and get paid. Combining the wide reach of Visa and Mastercard with Moov’s modern payments infrastructure, sophisticated fraud controls and intuitive user experience, we’re making it possible for financial institutions of any size to facilitate a better, easier money movement experience.”
In related news, recent PYMNTS Intelligence research shows that debit cards have become a “daily financial control panel for many Generation Z consumers,” which in turn offers banks a new way to compete for loyalty.
The PYMNTS Intelligence tracker “The Incremental Imperative: Why Debit Innovation Is the New Standard for Cardholder Loyalty,” a collaboration with FIS Global Payments, found that debit is important among young consumers who use it to keep on top of essential and discretionary spending.
The research found that 70% of Gen Z consumers who planned to use debit cards for at least some holiday purchases, the highest share among age groups surveyed for the report. And 42% of these consumers used debit at the grocery store, versus 19% who used credit and 6% who used Apple Pay.
“However, these consumers are also bringing different expectations to the relationship,” PYMNTS wrote in August.
“Gen Z wants direct access to its money along with speed, visibility and control throughout the payment experience. For issuers, that creates an opportunity to make debit more useful through a series of practical improvements rather than a wholesale redesign.”
