US Bank eliminates fees for digital RT P2P transfers to increase business

Clients can send money through bank-owned clearXchange, a network that allows intra- and inter-bank P2P transfers within existing banking apps and websites. US Bank was the first bank to launch real-time transfer on clearXchange.

Fee-less real-time transfers could more closely tie US Bank customers to mobile or digital banking. And though deposit accounts dont drive significant revenue, closer ties to mobile banking could push consumers towards other products that might — mobile banking users consume 2.3 banking products on average, compared to 1.3 among nonmobile users, according to Fiserv.

clearXchange could capitalise on the trust consumers place in their banks. No single firm has captured a majority of the mobile P2P market, which leaves room for banks to grab share, particularly because 75% of consumers would trust their bank most for a mobile wallet, according to ING. That level of trust could carry over to P2P products.

But when selecting a mobile P2P product, 59% of consumers value convenience, compared to just 23% valuing real-time transfer, according to Bank of America. The fact that consumers prioritise convenience over speed could indicate that real-time is not an urgent enough need to drive users to clearXchange. And the real-time advantage could become even less decisive in the fall, when ACH same-day transfer will bring quicker transfers to competing platforms, according to the Minneapolis Star Tribune.