In the UK if I want to send someone money to anyone in the UK I open the mobile app and input their sort and account number, type in the amount of money and hit send. Done.
Similarly in the NL if I want to send someone money to anyone in the EuroZone I open my bank app type in their IBAN type in the amount of money and hit send. Done.
Back in 2017 when I lived in the US this just wasn't possible. If I wanted to send money to someone I had to use Paypal, TransferWise (or similar), Venmo, etc. Some banks had direct access to ACH but far from all, then if they do support it it takes two days to arrive. Some banks allowed easy instant payments between accounts within the same bank. Much of my family purposefully keep an account with a small west coast credit union to facilitate moving money amongst ourselves.
Maybe things have gotten massively better in the US in the last 3+ years, but it was light years behind the UK and NL. In terms of speed, ease of use, and adoption.
Those transactions always make me nervous - is there a reason they don't have a step of showing the account name when you input the number? Like, I type 31-45-76 0452768934 and it says "Mr & Mrs Y O Mama" or "Notafraud & Co. Ltd." or whatever, as a confirmation?
That does exist now in the UK, I had it last time I sent money - I put in the name I expected and then it showed me the name on their account because they were a bit different.
For companies there are present lists so I don't need to know most company details to send say gas bill payments.
In the interm there's been unfortunately little progress. Zelle is supported 'natively' by all major banks, although it has horrible UX (starting with "each bank is different"), and allows for pseudo-instant transfers of small amounts (up to $x,000) between individuals in the US. (It is instant for the user, but on the subject of replacing ACH, it's more correct to say that it's pseudo-instant, same as credit cards - it seems instant to users, but until ACH is replaced, settlement will still happen in nightly (possibly half-day-ly) settlement batch files.)
It's mostly functional, the problem is that it doesn't work for anything more than trivial amounts, for various reasons, so the choices are either to wait 2 days, or physically walk to a bank location, authenticate, get them to give you a magical piece of paper, and then walk to the other location. (And then sometimes you still have to wait a few days more if it's not something you normally do "while the check clears".)
It's a byzantine system, but at least it doesn't (as a customer - it still does in places on the backend) involve me having to find a fax machine to send a fax, or send a picture of a check through a sketchy "free" online service.
> In the UK if I want to send someone money to anyone in the UK I open the mobile app and input their sort and account number, type in the amount of money and hit send. Done.
Apple / Google Pay? this isn’t as complicated as you’re trying to make it out to be. get a number, find out if they’re google or apple, use the appropriate app. This has been possible for years now.
Your quote and your response seem to be rather disconnected.
I guess my point is: in Europe sending money from one person to another is easy and easily done with no third parties. All I need to know is the other person's account info, access to my own account either by app or website, and done. Almost instant transfers between people.
In the US a third party is required. Be that Paypal, Apple/Google Pay (I didn't know they had launched this as a thing for person-to-person), square, facebook, etc. Not only does it require a third party it requires two people to be using the same third party.
My mother-in-law is fairly technophobic. She doesn't do online banking, doesn't use apps, etc etc. Yet despite that I can still send her money without an issue, because the infrastructure is basically universal. Unless they are doing something very strange anyone who has an account can receive money. Plumber comes over to fix a pipe, send him some money digitally, buying a car, send some money, etc etc.
Similarly in the NL if I want to send someone money to anyone in the EuroZone I open my bank app type in their IBAN type in the amount of money and hit send. Done.
Back in 2017 when I lived in the US this just wasn't possible. If I wanted to send money to someone I had to use Paypal, TransferWise (or similar), Venmo, etc. Some banks had direct access to ACH but far from all, then if they do support it it takes two days to arrive. Some banks allowed easy instant payments between accounts within the same bank. Much of my family purposefully keep an account with a small west coast credit union to facilitate moving money amongst ourselves.
Maybe things have gotten massively better in the US in the last 3+ years, but it was light years behind the UK and NL. In terms of speed, ease of use, and adoption.