Movenbank, in conjunction with MasterCard, is planning on launching its cardless mobile banking in February 2013.
According to the mobile startup’s CEO, Brett King, those plans may have hit a snag.
Finextra is reporting that Movenbank is “in discussions … about whether their mobile-only business model is in conflict with the Durbin Amendment” and its rules conferencing card and interchange fees. According to King, Movenbank cold be forced to offer physical cards in addition to its mobile platform in order to comply with regulations.
According to King, offering cards would not harm his business – in fact, it may help it – but would go against “the whole philosophy of the Movenbank business.”
“The problem with cards is that customers don’t get the user experience that they get with the phone,” King said. King cited the inability of cards to reflect real time payments as one reason for his company’s anti-card stance. He went on to say that if Movenbank is forced to issue physical cards, they’d be printed with “Emergency use only – Do not use” labels on them.
Finextra notes that Movenbank plans to launch in the first two weeks of February next year, and will use Social Security Numbers to meet KYC compliance.
To see more, read Finextra’s original report here.
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