Could All-Digital Checks Be the Next App for Your Smart Phone?
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Thursday, January 07, 2010 (DigitalTransactions.net)
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A new payment type, Electronic Payment Orders, might become the "check" of the digital age.
From DigitalTransactions.net
With an eye on the image-exchange networks banks have built since Check 21 took effect more than five years ago, analysts at the Federal Reserve Bank of Chicago and the head of the rules-setting organization for image exchange are proposing a new form of payment that would allow consumers and businessmen to “write” checks on mobile phones and send them as digital images to individuals or businesses.
This so-called electronic payment order, or EPO, would take advantage of existing image-exchange systems to route transactions, but unlike conventional check images the EPOs would be digital from the start, with no paper original or substitute check. The new payment form would also leverage the rapidly spreading base of smart phones like iPhones, BlackBerrys, and the new Nexus One, introduced earlier this week by Internet search giant Google Inc...