Big US banks unveil consumer payment app

October 24, 2016
The new app called Zelle will launch in 2017 and give consumers the ability to instantly send and receive payments using a smartphone

Major US banking groups Monday announced they would join forces for a new person-to-person mobile payment application to counter services like PayPal's Venmo and Square Cash.

The new app called Zelle will launch in 2017 and give consumers the ability to instantly send and receive payments using a smartphone.

"Zelle will transform how people manage their financial lives, providing them faster, safer, and more convenient payment options with their friends and family," said Paul Finch, of the banking technology firm Early Warning, which made the announcement.

"We are pleased to partner with the leading and financial service organizations in the country to make our vision for faster payments a reality for millions of consumers nationwide."

Zelle will be open to all banks and credit unions in the US and accessible to some 76 million mobile banking users.

To date, 19 financial institutions including eight of the largest US retail banks, have joined the Zelle Network, according to Early Warning.

The new service aims to woo consumers away from non-bank services that allow money transfers such as Venmo and Square Cash.

Because it involves the banks themselves, the service will allow recipients to instantly get use of the funds instead of waiting one or two business days.

Among the banks joining the service were Ally Bank, Bank of America, Bank of the West, BB&T, Capital One, Citi, Fifth Third Bank, FirstBank, Frost Bank, JP Morgan Chase, Morgan Stanley, PNC, US Bank and Wells Fargo.

Card networks Mastercard and Visa will also be partners in the service.

Explore further: Fast money: Banks making it easier to split the tab

Related Stories

Islamic banking lends advantage to financial institutions

September 21, 2016

Researchers at the Universities of Birmingham and Brighton studied a merger that took place in Bahrain, between an Islamic bank and a conventional bank in the wake of financial crises that rocked the world between 2007 and ...

Banks team up for online payment system

May 27, 2011

Online and mobile customers of three major banks will be able to instantly zap funds from their accounts to other depositors at the banks under a program to be rolled out across the country over the coming year.

Don't count ATMs out just yet

February 19, 2015

The automated teller machine might be an old and clunky piece of banking technology. But don't count it out just yet.

Recommended for you

Meteorite source in asteroid belt not a single debris field

February 17, 2019

A new study published online in Meteoritics and Planetary Science finds that our most common meteorites, those known as L chondrites, come from at least two different debris fields in the asteroid belt. The belt contains ...

Diagnosing 'art acne' in Georgia O'Keeffe's paintings

February 17, 2019

Even Georgia O'Keeffe noticed the pin-sized blisters bubbling on the surface of her paintings. For decades, conservationists and scholars assumed these tiny protrusions were grains of sand, kicked up from the New Mexico desert ...

Archaeologists discover Incan tomb in Peru

February 16, 2019

Peruvian archaeologists discovered an Incan tomb in the north of the country where an elite member of the pre-Columbian empire was buried, one of the investigators announced Friday.

Where is the universe hiding its missing mass?

February 15, 2019

Astronomers have spent decades looking for something that sounds like it would be hard to miss: about a third of the "normal" matter in the Universe. New results from NASA's Chandra X-ray Observatory may have helped them ...

What rising seas mean for local economies

February 15, 2019

Impacts from climate change are not always easy to see. But for many local businesses in coastal communities across the United States, the evidence is right outside their doors—or in their parking lots.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.