US Banks Are Launching a Payment Service to Rival Venmo
More than 30 US banks, including giants such as Citibank, Chase, TD Bank and Bank of America, are introducing Zelle, an instant payment app, reports The Verge.
The banks claim the differentiating factor of Zelle is its true instantaneousness. While apps like Venmo appear instant, it takes a couple days for the money to actually go from bank account to bank account.
Zelle will provide a payment processing network that sends money between accounts in seconds, per The Verge. It will also allow instant withdrawals, and will be advertised as a processor of casual transactions, similar to Venmo or Square Cash.
Despite not having an independent app, Zelle transfers can be done through existing personal banking apps or online banking, acting as a backend network for the individual bank partners. The New York Times reports that Zelle plans on releasing an app by the end of the year.
As of now, Zelle is available for customers with a US bank account, and throughout the month of June various banks will begin to offer its services.