Venmo and other payment apps may face a new competitor as Bank of America, Wells, Fargo, and other U.S. banks are introducing a new money- transfer service. Zelle, which has been in the works for months, will soon become available for current mobile apps used to check balances and deposit checks.
Created by a bank-owned company by Early Warning Services, this payment service will be available to 86 million, current mobile bank customers beginning this month. Other banking giants such as JPMorgan Chase and Citigroup will also begin offering this program in the next year. Other community and credit unions will be able to offer the program since Early Warning Services has relationships with numerous payment processors. This effort is to counter venmo increasing popularity as the primary payment app.
The head of digital for Wells Fargo stated, “The rollout of Zelle at banks across the country represents and advance in the speed, connectivity and security of P2P payments.”