Major banks partner for free, real-time person-to-person transfers with Zelle

By Jos ยท 11 replies
Oct 24, 2016
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  1. Some of the biggest banks in the U.S. are teaming up on a real-time payments network to rival the likes of PayPal, Venmo and Square Cash. The new venture is dubbed Zelle and will be available both as a standalone app and as a new feature within banks’ own official apps and websites, offering virtually instant deposits across banks at no extra cost.

    Nineteen U.S. financial firms, including Wells Fargo, J.P. Morgan Chase, Bank of America as well as regional lenders and credit unions have signed up for Zelle. It will be accessible to more than 76 million mobile banking customers from the start, allowing them to send money to one another using an email address or mobile phone number.

    The move comes as traditional financial firms are eager catch up with Silicon Valley upstarts that have proven popular with consumers and to dispel their industry’s image as slow.

    To ensure funds are delivered instantly, banks are agreeing to back each other’s transfers, even if the actual funds haven’t formally settled on the back end.

    In contrast, Venmo transfers typically take a day or two to become available for withdrawal, although the company is partnering with Visa and MasterCard for instant transfers when using a debit card. Meanwhile, Square Cash offers instant deposits for a fee.

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  2. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,286   +902

    I'm amazed at how prehistorical the banks are in the States and Canada, was one of the things that caught my eye when arriving. This is going in the right place but I'm sure they will add a big catch to it.
  3. Bigtruckseries

    Bigtruckseries TS Evangelist Posts: 583   +318

    The funds are in your account.

    Remember: no witnesses.
    bmw95 likes this.
  4. BananaHammock

    BananaHammock TS Rookie

    Canada has one of the most advanced and stable (if not the most) banking systems on the entire planet. Etransfer we've had for a very long time too.
  5. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,286   +902

    Hehe that's funny I've been in Canada for quite some time now, originally from Chile (South America) and I couldn't find it more prehistorical in comparison.
    Just to give you some quick examples that come to mind, no 2 step authentication, no instant wire transfers, no virtual credit cards for online purchases. On the other hand, there is nothing I miss in Chile from Canadian banks.
  6. tragicallyhip

    tragicallyhip TS Booster Posts: 91   +13

    Zelle?, wasn't that the name of the Nazi who tortured Dustin Hoffman to discover if his wealth was safe.
  7. Uncle Al

    Uncle Al TS Evangelist Posts: 3,347   +1,990

    Canada???? Seriously???? I'm not sure I trust a country who's currency is referred to as the Loony and Twoney! And by the way, how long do we think it will be before somebody develops a hack that lets the passerby snatch your cash off the app without your knowing it until it's too late? Days, hours, minutes? Or maybe it's already been done and we'll read about that in the NEXT posting!
  8. complexxL9

    complexxL9 TS Booster Posts: 51   +8

    How about highlighting Revolut. That is something truly revolutinary in terms of banking. Works everywhere in the world, free cashouts in all atm's, works online etc. Everywhere where mastercard is accepted, changing currencies at interbank rates, and all of that with no hidden fees whatsoever.
    Oh and it of course has amazing app, just go and try it.
  9. Wendy Oltman

    Wendy Oltman TS Booster Posts: 129   +16

    They are kind of disingenuous when they claim zero fees because their exchange rate is about 2% above spot but I guess it is still cheaper than buying from Coinbase with a debit card though.
  10. complexxL9

    complexxL9 TS Booster Posts: 51   +8

    If you are refering to revolut then I'm not sure what are you talking about, they only apply 0.5% "fee" on weekend because currency exchange markets are closed, so this is just to protect themselves from unforseen exchange rate fluctuations during the weekend. Also some illiquid qurencies like russian ruble might have some additional fees, but other than that it is free up to 6000eur per month.
  11. Squid Surprise

    Squid Surprise TS Evangelist Posts: 1,573   +714

    Think she meant Zelle was disingenuous not revolut... Banks are always the last to make big changes - they're already making money hand over fist and see no reason to adapt... I remember when banks were still using 2400 baud dial-up connections while the rest of the world was using broadband....
  12. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,286   +902

    Oh yeah I came up with a couple more, no annual credit card fees, free international purchases with no additional charges (I got a fancy one), no charges on wires, no charges on ATMs, specially no charges when using other banks ATMs, I'll continue once I have a couple more.

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