Last week at WWDC, Apple announced a new feature coming to Apple Pay that will let iOS users pay one another directly within Messages, placing the funds in a new "Apple Pay Cash" card that can then be transferred to a bank account or spent anywhere Apple Pay is supported. In addition to current competitors in the peer-to-peer payments space, including Venmo and Square Cash, a coalition of five U.S. banks are this week launching support for a new P2P payments service that promises speedier fund deposits, and support coming from more banks in the future.

The service is called "Zelle," and it will be rolled into the apps and websites of the banks supporting it, which will begin with JPMorgan, Bank of America Corp, Wells Fargo, U.S. Bancorp, and Capital One (via Reuters). Another two dozen banks and credit unions are predicted to join Zelle over the course of the next year. Zelle was originally announced last October.

zelle pic
Zelle's supporters are focusing on its ability to deposit funds "in minutes" into a friend's bank account, using only an email address or phone number, "because the banks are finally linking to each other." Apps like Venmo and Square Cash normally take up to one day to transfer money into a bank account, with potential for instant transfers available at additional costs.

The long-awaited network will allow tens of millions of bank customers to send money to each other instantly - known as person-to-person payments - with a few taps on their smartphones. That is an improvement over Venmo, which immediately alerts users that a money transfer is in progress, but takes time to shift funds between bank accounts.

"By coming together to offer Zelle, we are providing a large majority of Americans with a safe, fast and easy way to move money," said Bill Wallace, head of digital at JPMorgan Chase & Co (JPM.N), the biggest U.S. bank by assets.

Zelle was created by an industry consortium called Early Warning Services, whose CEO Paul Finch also cited payment service fragmentation as a major frustration for customers. Besides Venmo and Square Cash, even Facebook, Snapchat, and Google have their own peer-to-peer payments solutions, which Finch references as "inconsistent solutions."

“Fragmentation has been frustrating for consumers. Inconsistent experiences, have made it difficult to send and receive money between banks,” said Paul Finch, Chief Executive Officer, Early Warning Services. “Zelle unites the financial community behind a single, real-time P2P payments experience for millions of consumers. Together, we are removing friction from finance, allowing money to move seamlessly between accounts in minutes. This revolution in money movement will create for consumers a viable alternative to checks and cash.”

The banks supporting Zelle "are being careful not to confuse customers" with the introduction of another payments app, so it's said that a company like Chase will slowly introduce Zelle into its existing QuickPay app, calling it "QuickPay with Zelle." Later in 2017, Zelle will also allow customers with banks that don't connect with the service to use its instant payment features by pairing an upcoming Zelle app with a Visa or Mastercard debit account.

Zelle has a full list of banks and financial institutions launching support for the service, although it hasn't detailed which will be available first beyond the five banks mentioned today, and encourages users to check with their financial providers for more information.

Apple's own peer-to-peer payments solution will launch alongside iOS 11 this fall.

Related Roundup: Apple Pay
Tag: Zelle

Top Rated Comments

Rigby Avatar
60 months ago
how is this different than square cash?
The main difference to services like Venmo and Square is that you don't need another account, and then transfer money to your bank when you want to cash out. The transactions go directly from the sender's to the receiver's bank account. Besides saving time, this also means you are not beholden to the terms of service of a 3rd party (that often isn't subject to the same consumer protection regulations that banks are).

Zelle is really just a rebranding of the ClearXChange system that banks have already offered for a while under brands like Chase Quickpay or Wells Fargo Surepay. These always worked across banks, but most people didn't know that. That's why they are introducing Zelle as a unified brand.
Score: 2 Votes (Like | Disagree)
frozen220 Avatar
60 months ago
Instant depositing is the future of money transfer services. Google Wallet (and sometimes with Facebook Messenger) this is already possible (at least for me, with a Bank of America debit card linked). When I receive money from my roommates, the money is instantly available within 2 minutes of sending in my available balance, which I absolutely love. Hopefully Apple Payments is the same. Nobody wants to wait 1, 2 or 3 business days for money to finally be available to them.
Score: 2 Votes (Like | Disagree)
drewyboy Avatar
60 months ago
how is this different than square cash?
Why even use square cash?

Honestly with something like this, I have a hard time seeing why anyone would use a 3rd party option. Why sign up for another service giving out your bank account/debit/credit card info? Why have someone download an app, signup, transfer money to it only to have you then take that money and transfer it to your bank account?

Just cut the middleman out. I'd say that's more than reason to use it. I mean heck, they state over 86 million Americans will be on the network. It'll already be built into your banking app.
Score: 1 Votes (Like | Disagree)
yanksfan114 Avatar
60 months ago
There's too many options which cause fragmentation? Better introduce another option for people to use!
Score: 1 Votes (Like | Disagree)
lunarworks Avatar
60 months ago
There's too many options which cause fragmentation? Better introduce another option for people to use!
The difference is this option actually, and finally, makes sense. It's not going through some third party, it's going bank-to-bank direct.
Score: 1 Votes (Like | Disagree)
drewyboy Avatar
60 months ago
What is the alternative? My girlfriend and I have separate Capital One accounts. She helps me with bills by giving me cash monthly. We used to physically go to the ATM and withdraw from her account then deposit to mine (Which I know, is really dumb). So we use Square cash so we don't have to leave the house at all. How can I "cut the middleman"?

Now that this is out, yes, this can kill off Square cash in my case
Right, sorry if I wasn't clear. I meant moving forward from here on out.
Score: 1 Votes (Like | Disagree)

Popular Stories

maxresdefault

Review: M1 Max MacBook Pro After Three Months

Wednesday January 19, 2022 11:30 am PST by
It's now been a few months since the M1 Pro and M1 Max MacBook Pro models launched in October, and MacRumors video editor Dan Barbera has been using one of the new machines since they debuted. Over on the MacRumors YouTube channel, Dan has shared a three month review of his MacBook Pro to see how it has held up over time and how it's changed his workflow. Subscribe to the MacRumors YouTube ...
iphone se 2020 top

New iPhone SE Likely to Launch in April Based on Production Timeframe

Wednesday January 19, 2022 6:44 am PST by
Apple suppliers will begin producing display panels for the third-generation iPhone SE this month, with final assembly of the device likely to start in March, according to information shared by display industry consultant Ross Young. Based on this production timeframe, Young believes the third-generation iPhone SE is likely to launch in the second half of April, or perhaps in early May at...
AirPods 3 New Firmware Feature

Apple Updates AirPods 3 Firmware to Version 4C170

Tuesday January 18, 2022 11:46 am PST by
Apple today released a new 4C170 firmware update for the AirPods 3, an update from the prior 4C165 that was made available in December. Apple does not offer details on what's included in new firmware updates for the AirPods‌, so we don't know what improvements or bug fixes the new firmware brings. There is no standard way to upgrade the ‌AirPods‌‌ software, but firmware is...
iPad Air Feature 2 green

New Apple Products Filed in Regulatory Database, Likely Including New iPhone SE and iPad Air

Tuesday January 18, 2022 6:11 am PST by
Apple today filed unreleased iPhone and iPad models in the Eurasian Economic Commission database, as spotted by French blog Consomac. The filings likely represent the rumored third-generation iPhone SE, fifth-generation iPad Air, and potentially more. The unreleased iPhone models have the identifiers A2595, A2783, and A2784, while the unreleased iPad models have the identifiers A2588, A2589, ...
iphone 5g mmwave

U.S. Airlines Warn of 'Catastrophic' Crisis With Impending 5G Rollout, AT&T and Verizon Agree to Delay Around Airports

Tuesday January 18, 2022 10:35 am PST by
Verizon and AT&T's upcoming rollout of new C-Band 5G technology could cause chaos and lead to widespread delays of passenger and cargo flights, major U.S. airlines said on Monday in a letter sent to the White House National Economic Council, the FAA, and the FCC (via Reuters). "Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially...
microsoft office icons

Microsoft Releases Office for Mac Update With Full Apple Silicon Support in Excel

Tuesday January 18, 2022 4:15 am PST by
Microsoft has released a new version of its Office for Mac productivity suite that includes an updated Excel app with 100% native support for Apple silicon machines. According to the release notes accompanying version 16.57, Excel will now run natively on Macs powered by Apple's M1-series processors without having to use the Rosetta 2 translation layer, which means anyone using a Mac with an ...
appleeducation

Apple's US Education Store Now Requires Institution Verification to Buy Discounted Products

Wednesday January 19, 2022 2:22 am PST by
Apple is now requiring that customers in the United States verify that they're active students, teachers, or staff members at an educational institution in order to access education discounts on products. Previously, little verification was needed for customers to purchase products through Apple's education store in the United States. Apple's education stores offer models of the iPad and Mac ...
iPhone 14 Mock pill and hole thumb

ProMotion Now Expected to Remain Exclusive to iPhone 14 Pro Models, Not Expand to Entire Lineup

Sunday January 16, 2022 8:56 am PST by
Continuing the tradition set with the iPhone 13 Pro, only the highest-end iPhone 14 models will feature Apple's ProMotion display technology, according to a respected display analyst. Ross Young, who on multiple occasions has detailed accurate information about Apple's future products, said in a tweet that ProMotion will not be expanded to the entire iPhone 14 lineup and will remain...
Beyond iPhone 13 Better Blue Face ID

Rumored iPhone 14 Pro Feature Delayed Until Next Year

Wednesday January 19, 2022 3:00 am PST by
Apple's long-rumored under-display Face ID technology will not be coming to the iPhone 14 Pro, according to recent reports. Based on the latest rumors, it now looks unlikely that the 6.1-inch iPhone 14 Pro and 6.7-inch iPhone 14 Pro Max will feature Face ID technology under the display as several reports claimed over the past year. Display industry consultant Ross Young, who often reveals ...