Banks Are Coming Together To Create A New Payment Network That Rivals Venmo
A number of financial institutions are collaborating to make a new person-to-person monetary system called Zelle for their customers
There are plenty of apps that allow you to repay friends and colleagues digitally, such as the popular money-sharing service Venmo. J.P. Morgan Chase, Bank of America, Citigroup, PNC, Wells Fargo, and a number of other banks are teaming up to create a real-time payment network of its own.
Dubbed Zelle, this new system will connect 76 million customers, giving them the ability to send money to each other with their bank-registered email or mobile number. While most banks have a system like this for customers within the same bank, the new system is hoping to make other apps obsolete. in 2014, there were nearly $1.2 trillion moved in person-to-person transactions, according to an article by Bloomberg, with over twenty percent going through a third party system like PayPal. While there's no date yet for when this app will be available, but Venmo, PayPal, and other money exchanging companies might use the time to rethink their strategies.