After gaining momentum last year for its Payzur person-to-person payment system, Atlanta-based online PIN debit provider Acculynk has gone into a higher gear with transactions routing over the Pulse network.
Pulse, the Houston-based debit and ATM network belonging to Discover Financial Services, announced this week it will enable online Payzur debit-based P2P payments over its network.
Consumers will immediately notice the speed of the Payzur transaction, says Douglas Hartung, manager of emerging products for Pulse.
"These transactions ride the existing rails of the PIN debit network, thus eliminating the delays," Hartung says.
A major challenge for P2P providers is convincing users to agree to certain know-your-customer steps before using the service, Hartung says.
Because Pulse already uses Acculynk's PaySecure technology to enable customers to complete online PIN debit transactions, adding Payzur to the network allows consumers to use mobile- or Web-initiated transactions to send P2P funds with their debit card PIN through the PaySecure online graphical PIN pad.
Participating Pulse financial institutions will settle the transactions through their existing network connections and settlement processes with Pulse.
"Now, financial institutions can contract with Acculynk to brand the P2P service so a consumer can transfer funds through an e-mail address or mobile phone number," Hartung says.
Companies providing P2P services continue to deal with the reality that many consumers still favor cash for paying friends or family members, says David Kaminsky, senior analyst for emerging payments with Mercator Advisory Group.
However, P2P is "definitely a major use case" for advancing mobile payments, and Acculynk's service simplifies the process online, he adds.
"I haven't seen recent numbers to confirm how many consumers still use checks or cash, but P2P through mobile hasn't quite caught on yet," Kaminsky says. "But it will come into heavier play when consumers use it to share bills or lend money to each other on nights out."
Last fall, Acculynk extended its online PIN debit service to small web merchants through its purchase of PayLeap.