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Interactive banking on the Web
In 1995, Wells Fargo was the first U.S. bank to add account services to its website, with other banks quickly following suit. That same year, Presidential became the first U.S. bank to open bank accounts over the internet. According to research by Online Banking Report, at the end of 1999 less than 0.4% of households in the U.S. were using online banking. -
Online Bank
First internet only bank, Netbank, is established. The evolution of internet banking continued with one of the first truly successful internet-only banks, NetBank — which was founded in 1996 and closed in 2007 -
Hesitant to use online banking
By the year 2000, an overwhelming 80 percent of banks in the U.S. offered online banking services. In 2001, Bank of America made history as the first financial institution to gain more than 3 million online banking customers, about 20 percent of its customer base. -
eCommerce and Banking
P2P payments originated in the Pacific Northwest with a company called PayPal, which specialized in electronic money transfers. The payment system initially served to assist both eCommerce businesses and individuals, reaching massive scale following PayPal’s acquisition by online retailer eBay in 2002. This event marked the beginning of the rapid growth of P2P transactions.
eBay’s business model required a transaction intermediary to facilitate payments between customers and sellers. -
The Evolution of Internet Banking
As the evolution of online banking continued, it slowly gained popularity in e-commerce. When big-name banks began to offer online products and services, e-banking seemed to gain legitimacy for consumers. By 2006, online banking had become mainstream: An overwhelming 80 percent of banks in the U.S. were offering internet banking services. -
Online Banking Is Growing Faster Than the Internet
In a 2010 survey Fiserv found that online and mobile banking were growing at a faster pace than the internet. Online banking has continued to evolve as more innovations and conveniences have been offered
Bank of Internet USA has introduced a number of new and technologically advanced products and services since its inception, including mobile internet banking apps for the most popular mobile devices, mobile check deposit, Popmoney for money transfer via text or email and EMV-chip debit cards. -
Digital Money
Google developed the digital wallet. The digital wallet allowed individuals the ability to make payments, earn loyalty points, and redeem coupons. Started with limitations - could only be used on one phone type and by few merchants. -
Apple Pay
January 2013, though they had discussed Apple's potential involvement for years. Their joint solution was a system where single-use digital tokens would replace the transfer of personal information. A Visa executive said that 750 people at the company worked on the anonymized "token" system for a year, and the other partners had similar teams in collaboration.MasterCard began work on the project in 2013 and hoped that their joint work would become a "standard for mobile payments" -
Cash less economy
but a whopping 62 percent of Americans think the U.S. will be a cashless society within their lifetime, according to a 2016 Gallup poll. Services such as PayPal’s Venmo app, Apple Pay and Square Cash facilitate real-time money transfers between people using a mobile app. And big banks like Chase, Wells Fargo, Bank of America and U.S. Bank are elbowing each other to get into the person-to-person payment funds transfer market also, reported the New York Times.
