News

New Yahoo P2P service uses ATMs

December 15, 2003

WASHINGTON - Internet giant Yahoo has launched an online payment service that utilizes ATM cards to allow users to send money to family and friends in 182 countries.

The new venture puts Yahoo head-to-head with established money transfer firms like Western Union.

The service, called Yahoo PayDirect International, "revolutionizes current Internet person-to-person payment methods," said Dickson Chu, general manager of Yahoo PayDirect.

The new service will allow users to obtain cash through some 800,000 ATMs around the world linked to MasterCard's Cirrus network.

After a sender makes an initial remittance, most likely over the Web, a PayDirect card is sent to the recipient to allow withdrawal in local currency from ATMs.

According to Yahoo, recipients will not need a PayDirect account, Internet access or even a local bank account to obtain their funds.

Instead of using the card, recipients can also collect funds at any of 60,000 MoneyGram international money transfer locations worldwide.

Yahoo's partners include HSBC Bank, MoneyGram, courier service DHL, electronic payments group eFunds and Verso Technologies, a telecom calling card service.

The Internet giant is looking for a slice of the global remittances market estimated to be $140 billion to $200 billion per year.