Any Bank of Montreal customer with an email
address will be able to receive money by email in real time as a result of a
letter of intent signed by Bank of Montreal and CertaPay Inc.
The bank’s clients will have a secure person-to-person (P2P) cash
transfer system. To transfer funds, bank customers log on to their existing
Web account, click on the email payment feature and enter the recipient’s name
and email address. An email message instantly notifies the recipient that
funds have arrived, and at the recipient’s choice, the cash can be directed to
their preferred account – savings, chequing or credit card.
“CertaPay’s email money system addresses a real customer need that, so
far, has been unfulfilled in the payments industry. That’s the need to easily,
securely and affordably transfer money person-to-person electronically,” said
Marnie Kinsley, Executive Vice-President, E-Business, Emfisys, and President
and CEO Cebra Inc., Bank of Montreal.
“It will be like sending an electronic cheque, which is a vast
improvement over the paper-based process of mailing a cheque.”
When the CertaPay platform is up and running later this year, Bank of
Montreal customers, along with those of CIBC, Scotiabank and TD Canada Trust,
will have access to the first bank-based, email, P2P money system of its kind
and magnitude in the world.
“Email is ubiquitous,” says Michael Ginsberg, CertaPay’s CEO. “It’s
universal. It’s international. That makes email a perfect medium to facilitate
money transfer. The very fact that we’ve attached money movement to email has
a lot of foreign banks interested in our platform.”
ComQUEST Research Inc. estimates that today 58 per cent or about 14
million Canadians adults use at least one email address. According to a March
2001 estimate by the Canadian Bankers Association, there are approximately 20
million retail banking customers in Canada.
Banking industry surveys show that Canadians have confidence in the
safety and security of their banking system when conducting personal
electronic financial transactions. P2P email money transfers will originate
from within a bank’s password protected, authentication processes and
infrastructure. This means customers do not have to establish new accounts,
IDs or passwords with third parties other than their bank.
Also, customers do not need to know sensitive information about their
recipient, such as a bank account number, for example. They require only the
recipient’s name and email address, whether it’s to send money to family or
friends, pay the rent, donate to charities, contribute to fundraisers or pay
the daycare centre.
“Canadians have been able to make direct electronic payments to
established businesses and organizations for many years,” added Ms. Kinsley.
“Using email as the messaging system, funds will be transferred and payments
reconciled just as they’ve always been. By harnessing the power of the
Internet, we’re helping clients manage their money more easily.”
About Bank of Montreal
Bank of Montreal, Canada’s first bank is a highly diversified financial
services institution. The bank operates more than 30 lines of business within
its group of companies, including BMO Nesbitt Burns, one of Canada’s largest
full-service investment firms and Chicago-based Harris Bank, a major U.S. mid-
west financial services provider.
CertaPay Inc. specializes in point-to-point Internet payment solutions
for financial institutions (FI). The CertaPay platform is designed to work
under FI brands, under FI security and under FI control. CertaPay’s solutions
empower FIs to retain full control over their customer relationships, offer
new electronic payment services and leverage their high levels of trust for
security and moving money. Bank of Montreal, Canadian Imperial Bank of
Commerce, Bank of Nova Scotia and TD Canada Trust are integrating CertaPay’s
person-to-person payment capability, which enables online banking customers to