"It's essentially a person to person payment mechanism that enables people to pay each other any way they want for literally countless everyday usage occasions. " For the time being, the service is free. How does it work?
"Well, for example, let's say that you and I went out for dinner and I owed you forty bucks. You picked up the bill, I owed my portion of it. I would go home, go on my computer, choose a payment method and send you money. You'd get an email message that says that Matt sent you money and it would give you instructions on how to go to the site and claim your funds. Then after having done that, Western Union would deposit money into your checking account directly." There will eventually be a transaction fee similar to what ATMs charge. Another new money service on the Web is from American Express. Private Payments will allow card members to make online purchases with temporary card numbers to increase security. You can find us online at Bloomberg.com/radio. Bootcamp, I'm Fred Fishkin, Bloomberg News.