We’ve been covering a lot of news regarding NFC-based payments lately, but the service hasn’t really taken off yet in the United States. As the year goes on, we expect credit card companies and hardware manufacturers to create smartphones capable of using NFC technology. As we wait for these cashless transactions via mobile phones to take off, Discover has launched a new service with PayPal called Money Messenger that lets customers send money all over the world with a phone.
Money Messenger doesn’t require any new technology to use. Money Messenger allows a Discover card holder to send money to anyone with an email address or mobile phone number. The recipient also needs to have a PayPal account to store the electronic funds. The card holder can send money through Discover.com on their computer or phone. Discover views these transactions as purchases, so card holders receive a cash back bonus every time.
There are no fees associated with Money Messenger unless you are sending money to a business. PayPal will charge the business with each transaction.
Basically, as long as the recipient has a PayPal account, Money Messenger will make funs immediately available. They can then use the money however they like.