ClearXchange Capital One Partnership Expands Financial Options

This partnership is a game-changer for users, allowing them to send and receive money with ease.

By integrating ClearXchange with their services, Capital One is now offering a more comprehensive financial experience.

With the ClearXchange platform, users can send and receive money using their debit cards, eliminating the need for bank account information.

This means users can now send and receive money without having to share sensitive financial information.

clearXchange has added Capital One to its network, making it the seventh largest bank in the U.S. to join the P2P payments network.

This move brings the total number of largest banks in the U.S. to 4 out of 7, with clearXchange now having more than 85 million potential users from its member banks' online banking users.

Capital One's addition to clearXchange will help address the challenge of attracting new customers, as many potential customers aren't aware of clearXchange.

The network is now contemplating different strategies to spread awareness about the service, including rebranding clearXchange rather than white labeling it for its member banks.

This decision is being evaluated to see if the benefits of network branding justify changing the strategy.

New entrants like Amazon are starting to enter the P2P payments market, but clearXchange sees this as a positive, validating their space and customer demand for digital payments.

clearXchange has an advantage in leveraging the years of work and investment in online security by its member banks.

This means customers don't have to provide personal or card info to a third party, and the network can facilitate the sharing of best practices among banks to improve overall security.

Capital One's addition to clearXchange has given the P2P project a big bump, providing a flood of new potential end users.

The five member banks now cover more than half of the addressable person-to-person payments market in the U.S.

Capital One will go live with clearXchange later this year, and FirstBank will go live this summer, while JPMorgan Chase is incrementally deploying the product to groups of consumers.

Wells Fargo and Bank of America are already fully live with the product.

To use clearXchange, consumers provide a recipient's email address or mobile phone number to direct the payment.

Each member bank can control how clearXchange appears on its own website and mobile app.

Currently, Capital One customers can send up to $2,000 a day in outbound transfers, with a total limit of $10,000 over a 30-day period.

This limit will change starting in June, with transfers to and from your account subject to Capital One's discretion.

No cap exists on the amount of money that can be sent to your account.

The new limits are designed to improve the security of your service, but it's unclear how this will affect individual users.

We'll have to wait and see how this plays out, but it's worth noting that other banks have different limits in place, such as Chase Quickpay which allows up to $16,000 per month.