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

The arrangement allows credit unions and banks using NCR's SelfServ ATMs to let consumers send money directly from their deposit account using only the recipient's mobile phone number or e-mail address.

The recipient will have to have a PayPal account to access the funds or obtain one, said PayPal, which has been expanding offerings beyond its original online and mobile P2P channels.

“The ATM channel continues to play a powerful role in delivering new, multichannel financial services to consumers,” said Michael O'Laughlin, senior vice president, NCR Financial Services. “Whether it is deposit automation, bill payment, money transfers or a variety of new and exciting products and services, NCR SelfServ ATMs provide a secure, trusted and ever-present point-of-presence for the exchange of value by a bank or credit union's customers and members.

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

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

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

“Offering PayPal payments through the ATM channel can enable businesses to instantly pay their overseas or domestic suppliers and retail bank customers to send international and domestic payments, all with a few taps on an NCR ATM machine,” Schatt said.