The US banking industry is all set to launch its answer to the mobile payments app Venmo, and this is believed to be the biggest change in years dealing with how individuals digitally exchange funds.
In the coming week, five of the largest US banks are going to light up their new payments network known as Zelle, executives said. They plan to announce on Monday the details of the launch, and expect additional two dozen banks and credit unions to join by next year.
The network was long-awaited and will allow bank customers tens of millions to send money to each other instantly as person-to-person payments and this can be done in a few taps on their smartphones. This is an improvement over Venmo that alerts users immediately that a money transfer is in progress, but shifting funds between bank accounts will take some time.
Customers existing bank apps used for payment will not undergo much of a change. The transfers will be done faster as the banks are linked to each other, said executives.
“By coming together to Zelle, we will provide Americans with a safe, fast and easy way to move money,” said the biggest US bank by assets, Bill Wallace, head of digital at JPMorgan Chase & Co,.
JPMorgan, Bank of America Corp, Wells Fargo & Co, US Bancorp and Capital One Financial Corp are the first to plug into Zelle. The network is the product of Early Warning Services LLC, an industry consortium whose seven owners have over 86 million US mobile banking customers.