Promising a faster mode of digital payment, Zelle has set its foot in the market of digitalized payment system in the U.S. Zelle will roll out to over 86 million mobile banking customers in the nation competing against its arch rival Venmo, PayPal, Square Cash, and many others.
The other array of payment system takes at least a day’s time to transfer money from one bank to another, but with Zelle it’s a matter of minutes. While banks have been providing the means to offer instant transfer of money, the current systems of banks requires a concrete account of the customers and routing numbers for the other account money to be transferred. But with Zelle things are swift as it offers a very simple method of transferring- Zelle requires only a person’s phone number or email. Zelle will be initiated to partner institutions, and that will continue to live over a period of 12 months. Instead of being a standalone app like Venmo, Zelle will initially become available within the mobile banking apps of the participating financial institutions. “Together, we are removing friction from finance, allowing money to move seamlessly between accounts in minutes. This revolution in money movement will create for consumers a viable alternative to checks and cash,” said Paul Finch, CEO of Early Warning Services in a statement about Zelle’s launch.
Zelle will serve like Venmo, and is meant for the same sort of quick, personal payments like splitting the bill among friends or roommates or business partner collecting money or rent from each other.