PayPal and NCR have announced a deal to enable person-to-personpayments to be sent from an ATM.

The arrangement allows credit unions and banks using NCR'sSelfServ ATMs to let consumers send money directly from theirdeposit account using only the recipient's mobile phone number ore-mail address.

The recipient will have to have a PayPal account to access thefunds or obtain one, said PayPal, which has been expanding offerings beyond its original online and mobile P2Pchannels.

“The ATM channel continues to play a powerful role in deliveringnew, multichannel financial services to consumers,” said MichaelO'Laughlin, senior vice president, NCR Financial Services. “Whetherit is deposit automation, bill payment, money transfers or avariety of new and exciting products and services, NCR SelfServATMs provide a secure, trusted and ever-present point-of-presencefor the exchange of value by a bank or credit union's customers andmembers.

“This solution is just an early foray by NCR to extend person-to-person payment options around theworld.”

PayPal did not say what the new service would cost or whether afee would be charged the payment originator or recipient or both,but industry analysts expect the service to undercut competingmoney transfer services on price, particularly on internationalmoney transfers and remittances.

“Banks and credit unions can now bring a highly differentiatedset of capabilities to their retail and business customers,” saidDan Schatt, general manager, Financial Innovations, PayPal.

“Offering PayPal payments through the ATM channel can enablebusinesses to instantly pay their overseas or domestic suppliersand retail bank customers to send international and domesticpayments, all with a few taps on an NCR ATM machine,” Schattsaid.