Venmo Killer? Banks Debut Faster P2P Payments With Zelle Network

by Sarah Grotta 0

Zelle, the bank based, person-to-person money transfer platform announced today that over 30 financial institutions (FIs) are rolling out the Zelle solution under the same brand and the same user experience. Bloomberg reported:

More than 30 U.S. banks and credit unions are unveiling a unified service to customers this week, called Zelle, after years of watching Silicon Valley innovators from Square Inc. to Apple Inc. build peer-to-peer payment systems. It will supplant a patchwork of products the biggest banks have offered their customers for years. This time, the service is faster and so broad, that chances are it already has your money.

Across the nation, about 86 million mobile-banking customers will soon see Zelle logos in the apps managing their accounts, according to a statement Monday from Early Warning Services, a bank-owned risk-management firm that oversees the network. The Zelle symbol looks like a cross between a Z and a dollar sign. On many devices, a button may urge users to “Send money with Zelle.”

The 30 FIs represent owners of Early Warning’s Zelle service plus others, some of whom are connecting to Zelle through an integration with their processor. The timing of this announcement is probably no coincidence. Apple announced their P2P service iMessage just last week. More on that here

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

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