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Published: Tue, October 25, 2016
Economy | By Melissa Porter

America's Biggest Banks Unveil Venmo Competitor, Zelle

America's Biggest Banks Unveil Venmo Competitor, Zelle

On Sunday, 19 banks, regional lenders, and credit unions, including behemoths like JPMorgan Chase & Co., Bank of America Corp., and Wells Fargo & Co., joined forces and unveiled Zelle, a money-transferring app of their own. But Zelle is instantaneous - money is immediately sent to the account of the person being paid.

Early Warning today announced Zelle, a new, faster payments network that will revolutionize how USA consumers and businesses send and receive money.

Then early next year about 20 banks will put the Zelle name on their mobile apps and web pages.

But the banks were slow to bring other financial institutions into the fold and market the network and so lost momentum to technology company upstarts.

"Zelle will transform how people manage their financial lives, providing them faster, safer, and more convenient payment options with their friends and family", said Paul Finch, chief executive officer, Early Warning. Citigroup Inc did not agree to join until September. Zelle will gain a presence as a public consumer application that will see compatibility among several large and prominent USA banks.

Zelle is an inclusive network that is open to all banks and credit unions in the U.S. At launch, Zelle will be one of the largest faster payments networks in the U.S., accessible to over 76 million mobile banking users nationwide. But PayPal, which owns Venmo, likes that the service is popular with millennials who "Venmo" each other for expenses like shared meals and rent.

Finch further revealed that the buttons used on the applications at the users' end will also feature the same design across several banks, as a part of the concentrated effort to make Zelle ubiquitous by the banks. JPMorgan's Chase "Quick Pay,"for example, processed US$7.4 billion in the three months ended September, up 36 per cent from a year earlier, according to bank spokeswoman Rebecca Acevedo".

Zelle will be open to all banks and credit unions in the U.S. and accessible to some 76 million mobile banking users.

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