Have the Zelle banks finally found a winning formula?
- Author: Zachary Reyes Jun 13, 2017,
Jun 13, 2017, 5:13
But banks have a different and potentially larger addressable market, starting with the over 86 million USA mobile banking customers.
America's big banks are finally taking on Venmo.
This list of supported banks includes the following (in alphabetic order): Ally Bank, Bank of America, Bank of Hawaii, Bank of the West, BB&T, BECU, Capital One, Citi, Citizens Bank, Comerica Bank, ConnectOne Bank, Dollar Bank, Fifth Third Bank, FirstBank, First Tech Federal Credit Union, First Tennessee Bank, First National Bank, Frederick County Bank, Frost Bank, HomeStreet Bank, JP Morgan Chase, KeyBank, M&T Bank, MB Financial Bank, Morgan Stanley, PNC Bank, SchoolsFirst Federal Credit Union, Star One Credit Union, SunTrust Bank, TD Bank, USAA, U.S. Bank, and Wells Fargo.
The Zelle network was created by Early Warning Services, an industry consortium whose owners have more than 86 million mobile banking customers. With other groups also having success and inroads in the U.S. in the P2P space, such as Square, Venmo, and Apple Pay, Zelle looks to threaten the status quo and solidify itself as the paramount service moving forward in the banking space.
For reference, Venmo alone handled payments of $17.6 billion in 2016, while the banks in Zelle's network collectively processed $55 billion in person-to-person transactions previous year.
The banks want to leap over those sleek but scattered offerings by connecting their critical mass of account holders through a single network.
Zelle will be available in the apps of USA financial institutions starting this week and over the next 12 months.
"Fragmentation has been frustrating for consumers".
A Zelle app will arrive at a later point, but Early Warning declined to say when beyond 'the coming months'. After the sender provides the email or phone number and amount, the recipient gets a notification that explains how they can can complete the payment.
Since existing options within bank apps only let you send money to people who have accounts with them, Zelle could make future transfers much easier. But they ultimately had no choice but to match the free price tag of money transfer startups. Once you have the service, you can pay your contacts using either their email address or phone number. A standalone Zelle app available through Mastercard and Visa is also set to come onstream later this year.
For instance, Chase will initially twin the brand with the QuickPay app its customers already use by showing "QuickPay with Zelle" on its mobile app and website.