Big Banks Rival Apple Pay and Venmo with Launch of New Peer to Peer Network
"86-million U.S. mobile banking consumers will be able to send and receive money through Zelle –
a new person-to-person (P2P) payments network" - Early Warning Services.
Mobile apps such as Venmo and Apple Pay dominate the peer to peer payment market but a new heavy hitter has appeared, Zelle.
Zelle is a new payment app that recently launched and is a collaboration of big banks including but not limited to JPMorgan, Chase, Bank of America, and Wells Fargo. The app is available for use for more than 30 U.S banking institutions.
It's boasted as faster, easier, and safer way for consumers to transfer funds between checking accounts. Venmo allows users to send transfers to other peers however, the funds stay within it's own ecosystem unless the user takes additional steps to deposit it into their bank accounts.
Zelle is already embedded in specified banking platforms so there is no need to download any additional apps to utilize it.
Image via Zelle
Mark Monaco, head of enterprise payments at Bank of America stated "The combination of that speed and the safety and security of knowing that it’s being facilitated by financial institutions is important to customers. You get the convenience of P2P payments with the security that banks offer."
Digital banking has become necessary for financial institutions as checks and cash are very costly for banks and inconvenient for consumers. This is a breakthrough in payment transfers as many banks often do not share the same network. With Zelle users will be able to send funds in real time without banking at the same institution.
To see the full list of participating banks visit: https://www.zellepay.com/participating-banks-and-credit-unions