• filter:

30 Major banks launching Zelle - A digital payments network

  • Text Only
  • Search this Topic »
Voting History
rated:
It allows users to instantly send money to each other.

https://mobile.nytimes.com/2017/06/12/business/dealbook/mobile-b...

Member Summary
Most Recent Posts
No. I was responding to your over generalized statement that no one over 40 knows what zenmo is. That's what you wrote.... (more)

RJG (Jun. 24, 2017 @ 5:28p) |

You pretty much have to set up different email for each bank anyway.  Or even better phone numbers.

It routes through to ... (more)

RedWolfe01 (Jun. 25, 2017 @ 1:18a) |

Tried to setup a Zelle account through the Wells Fargo app, but it won't let me register with my Google Voice number. A... (more)

DubSlick (Jun. 27, 2017 @ 3:55p) |

Transfer in minutes between these banks, as of 12 Jun 2017:

Top banks:

Ally Bank
Bank of America
Capital One
Citi
JP Morgan Chase 
PNC Bank
TD Bank
USAA 
U.S. Bank
Wells Fargo

Complete list:

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
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
Catchy name...not

rated:
icecube said:   Catchy name...not
  The wireless carriers should have stuck with ISIS.  The name seems to have turned out catchy and in the news after all, even though the payment network failed.
Why all these entities think people want to use 100 different payment apps just so the companies can individually make more money, I have no idea.
No, I will not use a Wal-Mart payment App, CVS payment App, and XYZ banks only app.  Segregation removes the convenience that's gained by universal payment methods like Apple and Android pay.

edit:competition is good, as long as they don't stop participating in other payment methods to push their own, like the above examples where the chains have disabled NFC readers to push their own and the carriers had banned Google Wallet to support ISIS.

rated:
I don't see what makes it a "Venmo killer" as they claim. The only feature over Venmo is being embedded in a banking app. Instant deposits is another but like they said, it's coming to Venmo anyway.

Have I missed something great about Zelle?

rated:
The important question with any new payment method or system - how can I exploit this?

rated:
Bend3r said:   
icecube said:   Catchy name...not
  The wireless carriers should have stuck with ISIS.  The name seems to have turned out catchy and in the news after all, even though the payment network failed.
Why all these entities think people want to use 100 different payment apps just so the companies can individually make more money, I have no idea.
No, I will not use a Wal-Mart payment App, CVS payment App, and XYZ banks only app.  Segregation removes the convenience that's gained by the Apple and Android pay.

  The Walmart payment app is great for one thing -- managing my various GCs purchased for less than face value.

rated:
newatbee said:   It allows users to instantly send money to each other.

https://mobile.nytimes.com/2017/06/12/business/dealbook/mobile-banking-zelle-venmo-apple-pay.html?referer=

  I ain't reading all that but isn't there a fee? You can do this with Paypal for free.

rated:
Don't we have enough methods for paying small amounts between friends, etc?

Anyway, if anyone wants to Zelle me some money, go ahead.

rated:
RJG said:   I don't see what makes it a "Venmo killer" as they claim. The only feature over Venmo is being embedded in a banking app. Instant deposits is another but like they said, it's coming to Venmo anyway.

Have I missed something great about Zelle?
You missed that it's integrated with all the big banks. Assuming it's free, it's popmoney killer (which isn't available at all the big banks). The threat to Venmo is because you don't need to sign up for another account or get another app. It won't kill right away since it's difficult to change peoples habits.

rated:
I so miss that one company promoted here well years ago that was giving everyone like $20 or $25 and you could refer yourself several times and then refer family too... I know some of you did much better but I got like $1k from that haha

I happened to be travelling when I discovered the whole refer yourself and others thing and it was so great. Extra travel money!!

Sadly the details have finally faded from my memory. I can't even remember the payment providers name. esomething?

If any payment provider does that again, I'll sign up for it haha (and cash out and never use it again, oops)

rated:
Which one accepts credit cards? 

rated:
Thanks OP.
The more the better- more competition is good for consumers and more chances of using it to our advantage.

rated:
Hmm...interesting.

rated:
Zelle is a suped-up ClerXchange. basically It's the system Chase QuickPay and others have been using but simplified.

rated:
List of participating banks and credit unions:

https://www.zellepay.com/participating-banks-and-credit-unions

rated:
amd555 said:   Zelle is a suped-up ClerXchange. basically It's the system Chase QuickPay and others have been using but simplified.
  
It appears Zelle is clearXchange.

Quote from website:

clearXchange® is becoming Zelle!
June 12, 2017 by The clearXchange Team 

We’re excited to announce that clearXchange will soon become Zelle, a new way to pay! We are making this change to provide you with an improved user experience – you will be able to send money to more people and receive money directly into your bank account, typically within minutes. Zelle is offered through participating mobile banking apps and, in the near future, through a standalone Zelle app.

Your bank or credit union may already offer Zelle!Check the list of participating banks and credit unions here clearXchange.com/receive to see if you can start using Zelle through your existing mobile banking app today. If you don’t see your bank or credit union on our list, they may be joining soon! In the meantime, you can use clearXchange.com to receive money – and we’ll let you know when the Zelle app is available!  

rated:
Seems like a Venmo killer to me. Larger (potential) user base, instant funds, no additional app to download, and one less company to deal with/provide your info. I'm not seeing any sort of competitive advantage for Venmo if this is widely adopted. It would be nice if they added NFC or some other tap to pay function.

rated:
S197 said:   Seems like a Venmo killer to me. Larger (potential) user base, instant funds, no additional app to download, and one less company to deal with/provide your info. I'm not seeing any sort of competitive advantage for Venmo if this is widely adopted. It would be nice if they added NFC or some other tap to pay function.
  
Can you explain this more?  I feel like the same things could mostly be said for others like Popmoney which is available in existing bank sites.

What's better that would make me start using Zelle?  Venmo can allow payment from more than one source.  If this is embedded in your bank app, it means paying from that alone, doesn't it?  How is there a larger potential user base?  Basically anyone in the US can use Venmo today.

If Zelle allows payments to Canadians without some crazy exchange fee I will use it.  That's one feature I've wanted to use several times in Venmo and can't.
 

rated:
jasonatq1520radiocom said:   I so miss that one company promoted here well years ago that was giving everyone like $20 or $25 and you could refer yourself several times and then refer family too... I know some of you did much better but I got like $1k from that haha

I happened to be travelling when I discovered the whole refer yourself and others thing and it was so great. Extra travel money!!

Sadly the details have finally faded from my memory. I can't even remember the payment providers name. esomething?

If any payment provider does that again, I'll sign up for it haha (and cash out and never use it again, oops)

  
I think that was Obopay arouond 2008-ish? Was memorable because I got my your bonus cash directly from an ATM with the debit cards they sent.  

rated:
It's going to be difficult to use Zelle to simulate direct deposits. ClearXchange worked when the bank you were doing an ACH push didn't have ClearxChange in its system. Now that Zelle has 30 banks signed up for this service we'll have to find another way to ACH push.

rated:
If it saves people having to use a third party app on top of their regular bank app, that may have a chance. It depends on implementation I guess but it's definitely a potential strong competitor for Venmo. Especially of money is available nearly instantly for the recipient.

rated:
It is just a rename of ClearxChange -- nothing really changed. It is also free. I used it a lot with my roommate in Charlotte who had BofA - he paid into my Wells account.

Really all you do is associate your phone/email with your bank account -- and then anyone who wants to send you money can use that information in the bank's web-app to locate you.

rated:
Chase already updated their app with the new branding, from the changelog:
"Introducing Zelle(SM). The new easy way to send and receive money between almost any U.S. bank. Now in the Chase Mobile(R) app. Chase QuickPay(R) is better together with Zelle(SM)"
Inside the app it's referred to as "Chase QuickPay with Zelle" so they're probably keeping the old name for familiarity.

rated:
I tried to enroll it using the Chase app and it says my email address is associated with another account and I've never used this nor ClearxChange before...

rated:
user1337 said:   I tried to enroll it using the Chase app and it says my email address is associated with another account and I've never used this nor ClearxChange before...

I had the same issue when enrolling my email with Capital One. I had to go to the Bank of America website to deactivate that email address, since BoA was basically using ClearXchange even though it's not mentioned anywhere.

I was surprised that the Capital One iPhone app even mentions and supports Zelle already, since the app hasn't been updated since June 1. They must have had a way to remotely enable it after Zelle officially went live.

rated:
Now that Citi is online with cXc, Zelle has got most people who bank covered. If I was FW savvy, I would make sure to have a checking or at least savings with one of the banks on the network. There are many of them that have 'free' accounts. You only need to be on one of them. If you are on multiple, you likely have already received email alerts to reconcile duplicates.

I think the real-time aspect is key and something that Venmo and Paypal will not be able to do without significant cost considering how the banking infrastructure is setup (even with same day ACH changes).

In fact, the member banks on Zelle have to essentially front the money to recipients with some other process to true up/reconcile what money is needed within the network the next day or so (likely bank to bank wires).

The idea is for the larger banks is they will have minimal outside transfers as they will have so much of the internal activity that can even out the net money. I have also seen recurring options which is great too.

Reference threads:
https://www.fatwallet.com/forums/finance/1558775
https://www.fatwallet.com/forums/finance/1498733
https://www.fatwallet.com/forums/finance/1212478
https://www.fatwallet.com/forums/finance/1156144
https://www.fatwallet.com/forums/finance/1100600

Zelle did 55 billion and 170 million in transfers for 2016. That means Venmo did pretty well, but I suspect Zelle will win the long hall with instant availability.

The bigger game changer I think will be for businesses to who want to accept payment at check-out (both online and in-person). No exchange fees.

if I was a small business, I would overnight get setup on this aspect to receive payment. Sure a bit more manual to verify payments, but offering a discount in the short-term to encourage payment via this method does not seem out of line. Outside of the FW audience, I think using debit for purchases (no rewards) is prevalent.

Rasheed

rated:
RJG said:   
S197 said:   Seems like a Venmo killer to me. Larger (potential) user base, instant funds, no additional app to download, and one less company to deal with/provide your info. I'm not seeing any sort of competitive advantage for Venmo if this is widely adopted. It would be nice if they added NFC or some other tap to pay function.
  
Can you explain this more?  I feel like the same things could mostly be said for others like Popmoney which is available in existing bank sites.

What's better that would make me start using Zelle?  Venmo can allow payment from more than one source.  If this is embedded in your bank app, it means paying from that alone, doesn't it?  How is there a larger potential user base?  Basically anyone in the US can use Venmo today.

If Zelle allows payments to Canadians without some crazy exchange fee I will use it.  That's one feature I've wanted to use several times in Venmo and can't.

  
In theory anyone can use Venmo today but it requires you to download the app and link a bank account.  Venmo is the middle man that is no longer needed.  Payment solutions are too fragmented right now and Venmo doesn't do anything to solve this problem.  Zelle does because it is being adopted by every single major bank in the country.  Say you have dinner with friends and want to split the bill.  What are the odds everyone has Venmo?  Now contrast that against the odds of everyone having a BofA, Wells, Citi, Chase, Ally, etc., account.  The latter is more probable.

It's simply a better mousetrap.  In theory I can make a Facebook clone that everyone can use.  That doesn't mean anyone is actually going to use it.  People want less clutter, not more.  If I can have a single P2P solution instead of having to have a Venmo, Plenti, Square Cash, Paypal, Android Pay, Apple Pay, etc. why wouldn't I want  that, all features being equal?

rated:
I assume the transactions are listed as P2P ACH and not PPD ACH?
 

rated:
S197 said:   
RJG said:   
S197 said:   Seems like a Venmo killer to me. Larger (potential) user base, instant funds, no additional app to download, and one less company to deal with/provide your info. I'm not seeing any sort of competitive advantage for Venmo if this is widely adopted. It would be nice if they added NFC or some other tap to pay function.
  
Can you explain this more?  I feel like the same things could mostly be said for others like Popmoney which is available in existing bank sites.

What's better that would make me start using Zelle?  Venmo can allow payment from more than one source.  If this is embedded in your bank app, it means paying from that alone, doesn't it?  How is there a larger potential user base?  Basically anyone in the US can use Venmo today.

If Zelle allows payments to Canadians without some crazy exchange fee I will use it.  That's one feature I've wanted to use several times in Venmo and can't.

  
In theory anyone can use Venmo today but it requires you to download the app and link a bank account.  Venmo is the middle man that is no longer needed.  Payment solutions are too fragmented right now and Venmo doesn't do anything to solve this problem.  Zelle does because it is being adopted by every single major bank in the country.  Say you have dinner with friends and want to split the bill.  What are the odds everyone has Venmo?  Now contrast that against the odds of everyone having a BofA, Wells, Citi, Chase, Ally, etc., account.  The latter is more probable.

It's simply a better mousetrap.  In theory I can make a Facebook clone that everyone can use.  That doesn't mean anyone is actually going to use it.  People want less clutter, not more.  If I can have a single P2P solution instead of having to have a Venmo, Plenti, Square Cash, Paypal, Android Pay, Apple Pay, etc. why wouldn't I want  that, all features being equal?

Thanks for the explanation.  It makes more sense now, but I'm still not 100% sure I buy this.  People I know already use Venmo and already split bills that way, and no one has a problem downloading an extra app.  I've never heard that complaint.  

Plus if the argument for Zelle is that everyone already has a bank app, then I'd ask why aren't they using Facebook to pay?  It's a very common app to have, and I don't know anyone who's split a bill with Facebook.

I think the best argument for Zelle is trustworthiness.  Maybe someone who's afraid to try Venmo will have less of a problem trying something from a bank they trust.

rated:
^^^ LOL. I'd never give Facebook access to my money. Heck, I don't even use my real name.

Trustworthiness has nothing to do with it, since it's a new brand that nobody knows anything about. Everybody knows Venmo.

I never got Venmo because paypal already had the same exact functionality, and I never really understood why Venmo got so big. But this Zelle thing had better be huge. Instant transfer is key. I'd use it just to transfer money to myself if that's possible.

My guess is businesses will not be able to accept it for payment. They'll probably add some kind of prohibitive fee for businesses. If they were smart and independent of banks, they'd make those fees much less than the cost of accepting credit cards. But they're not independent and banks make lots of money from credit cards, so this probably won't happen.

rated:
scripta said:   ^^^ LOL. I'd never give Facebook access to my money. Heck, I don't even use my real name.

Trustworthiness has nothing to do with it, since it's a new brand that nobody knows anything about. Everybody knows Venmo.

I never got Venmo because paypal already had the same exact functionality, and I never really understood why Venmo got so big. But this Zelle thing had better be huge. Instant transfer is key. I'd use it just to transfer money to myself if that's possible.

My guess is businesses will not be able to accept it for payment. They'll probably add some kind of prohibitive fee for businesses. If they were smart and independent of banks, they'd make those fees much less than the cost of accepting credit cards. But they're not independent and banks make lots of money from credit cards, so this probably won't happen.

  My original statement is that I don't see this is as a Venmo killer as claimed.  I suggested Zelle's advantage over Venmo is trustworthiness because people will see it as a feature of their bank not a new account they have to open.  That is all.  I don't understand the excitement over instant transfers which Venmo will be doing soon anyway.  That's not a differentiator.

rated:
I think there's an age angle. People over 40 don't know what Venmo is. They may have heard of it, but they haven't used it. But they'll use something that's embedded in their bank's mobile app.

rated:
That may be true in some cases but I and the people I mentioned are all over 40 and use it. I mentioned Venmo to some young co-workers and they had no idea what I was talking about.

rated:
I use SquareCash. /shrugs/

rated:
Not a bad band-aid for now, but I doubt will help the fragmentation of this market... some form of digital currency is the future - one that functions like email. You can use whichever app/service you want, transfers are near instant and don't take days to clear, etc.

I do not believe it will be Bitcoin in the U.S., though I believe Bitcoin can carve out a long-term niche as a globally accepted currency. I envision a Fed issued USD digital coin which mirrors the value of $1 as the most likely future outcome.

rated:
The funny thing is that paper checks are actually faster than these mobile payment systems. If someone writes me a check, I can deposit it in my Alliant account via my phone and have instant availability of funds.

Any of these third party offerings require me to hand over my account information to companies of questionable trustworthiness (Paypal, etc)... and wait several days while the money goes through several systems.

People look at me like I'm nuts but I prefer paper checks for p2p payments.

rated:
sullim4 said:   People look at me like I'm nuts but I prefer paper checks for p2p payments.
With some reason. Checks are anything but guaranteed forms of payments. Banks let you deposit it, they reflect it in your balance but they'll just as fast take it out, charge you bounced-check fees, etc if the check is not good. To be fair, that also applies to many p2p payment systems. But there's a reason why cash is much preferred over checks for many p2p transactions.

If you get something at a garage sale or from private sale on craig's list, check from the buyer is next to worthless because of the lack of sufficient fund verification. Between friends, maybe less of a problem but between strangers, it's a major issue. Even between parties who know each other well, none of those payment methods are as safe as cash.

This is where potentially Zelle could have the edge if they take care of sufficient fund verification in a very timely manner.  If it's integrated seamlessly and very simply into banking apps that people are already using to check account balances, make deposits, etc, and it adds a real-time sufficient fund verification, then I could see it starting some consolidation due to convenience and added features. We'll see if they can deliver that though.

rated:
sullim4 said:   People look at me like I'm nuts but I prefer paper checks for p2p payments.
  I think you should go to doubloons only.  Much safer.
 

rated:
johnstarks13 said:   Not a bad band-aid for now, but I doubt will help the fragmentation of this market... some form of digital currency is the future - one that functions like email. You can use whichever app/service you want, transfers are near instant and don't take days to clear, etc.

I do not believe it will be Bitcoin in the U.S., though I believe Bitcoin can carve out a long-term niche as a globally accepted currency. I envision a Fed issued USD digital coin which mirrors the value of $1 as the most likely future outcome.
Digital currency is not the future, it's the present -- the money in everyone's bank accounts is digital. There's no need to "issue" anything new. They just need to upgrade and modernize the existing infrastructure (ACH, SWIFT, fedwire, etc) to enable instant (or almost-instant) transfers, or create something new, but it can be much simpler than cryptocurrency.

Skipping 11 Messages...
rated:
Tried to setup a Zelle account through the Wells Fargo app, but it won't let me register with my Google Voice number. Anyone else run into this?

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017