Major Banking Institutions Hope to Rival Venmo with Zelle
Hayley McGlone — October 24, 2016 — Tech
References: zellepay & digitaltrends
In order to compete with the easy mobile transfer capabilities of Venmo, major banking institutions in the US announced they will offer the same capabilities through the Zelle app.
Banking institutions like JPMorgan Chase & Co., Bank of America Corp., and 17 other banking and credit institutions will offer easy transfers between accounts in 2017 with Zelle. Consumers using Zelle will be able to send and receive payments to chosen recipients quite easily. Since Zelle will be featured on the associated bank's mobile apps and websites, banks are aiming to draw consumers away from other instant payment networks, like Venmo, in favor of using one associate with their banking institution.
The widespread use of payment apps like Venmo, and potentially Zelle, is part of the growing movement away from the use of cash and checks as forms of payment.
Banking institutions like JPMorgan Chase & Co., Bank of America Corp., and 17 other banking and credit institutions will offer easy transfers between accounts in 2017 with Zelle. Consumers using Zelle will be able to send and receive payments to chosen recipients quite easily. Since Zelle will be featured on the associated bank's mobile apps and websites, banks are aiming to draw consumers away from other instant payment networks, like Venmo, in favor of using one associate with their banking institution.
The widespread use of payment apps like Venmo, and potentially Zelle, is part of the growing movement away from the use of cash and checks as forms of payment.
Trend Themes
1. Growing Mobile Payment Capability - Banks are offering easy transfers between accounts through mobile apps, rivaling popular payment networks like Venmo, creating opportunities for disruptive innovation in mobile payment technology.
2. Shift Towards Digital Payments - The movement away from cash and checks as forms of payment towards payment apps like Venmo and Zelle presents opportunities for disruptive innovation in digital payment solutions.
3. Integration of Payment Services - Banks integrating payment services like Zelle within their own mobile apps and websites offers disruptive innovation opportunities in streamlining financial transactions and enhancing user experience.
Industry Implications
1. Banking - Major banking institutions offering instant payment capabilities through apps like Zelle encourages disruptive innovation in banking by introducing new possibilities for frictionless financial transactions.
2. Mobile Apps - The rise of mobile payment apps like Venmo and Zelle creates disruptive innovation opportunities in the mobile app industry by reshaping how users transfer and receive funds digitally.
3. Digital Payment Solutions - As digital payments become more prevalent, the development of innovative digital payment solutions, like Zelle, presents disruptive innovation opportunities in revolutionizing the way people make transactions.
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