Paypal may be one of the most commonly known money-transfer services but it's not the only one. We've rounded up 9 alternatives that might suit your needs better.
PayPal may claim it's "the world's most-loved way to pay and get paid," but it's not the only one in town.
New services aim to do for money transfers between individuals what PayPal did for e-commerce: provide a way to make payments online without having to give recipients your credit card or bank account information. In addition, businesses seeking an alternative to selling goods and services via PayPal can find plenty of options.
Popmoney, which debuted late last year, and ZashPay, which arrived this summer, work much like PayPal: For payments, you need only the recipient's email address or mobile phone number. One important difference: PayPal lets you send and receive payments only via your account with PayPal. To make a payment, you must first fund your account (through a linked bank account or credit card); to receive a payment, you must transfer it to the bank or credit card in order to use it for anything other than a PayPal purchase. However both services are currently only available in the US.
Popmoney and ZashPay simply transfer money directly from your bank account to the account of the person you're paying (neither service supports credit cards). This process resembles the one used in electronic bill payments - and in fact, both services are offshoots of companies that manage bill payment services for banks.
Both sender and recipient must have accounts on these services, but the services don't tie up any money - they just associate your existing bank account with your email address or your mobile phone number.
If your bank offers either service, it will set up your account automatically - no need to provide additional info. Popmoney says that some 175 banks already support its service while ZashPay had about 70 banks on board.
Otherwise, you can still use these services to receive cash by signing up for a personal account on a service's website - but you must provide sensitive information, including your date of birth and the accounting and routing numbers for the linked bank account. You must then go through a verification process, which involves waiting for the service to deposit two small (under £1) sums to your account and then reporting the exact amounts received.
NEXT PAGE: Popmoney and ZashPay