Peer-to-Peer Payments Service 'Zelle' Debuts With Support From Major US Banks for Speedier Transfers

[jimthing]

In the UK, for consumer banking, we can just send money from bank ac to bank ac via a mobile telephone number (up to £300 [~$500] per ac to receive per day), via any of our banks' mobile apps.

Or just use 8 digit ac# + 6 digit sort code via the FP (Faster Payment) system, in app, into the £thousands, as many transfers as wanted: all rec'd instantly.

Or our instant CHAPS system is needed for really large transactions like £100,000s+ (chargeable per transaction at ~£20-30 fee), which typically involves going into bank personally with ID to authorise.

(Obviously, large companies have furthur specialised facilities for their large banking transfer needs.)

Don't you US guys have similar interbank systems (at least like the first of those two above; mobile & FP), for your everyday consumer banking... weird.

 

[MrX8503]

Might be a bit late for Zelle with Apple Pay P2P coming this fall.

 

[tmiw]

Might be a bit late for Zelle with Apple Pay P2P coming this fall.

Still a lot of people out there using Android phones.

 

[MrX8503]

Still a lot of people out there using Android phones.

True, but that hasn't stopped iMessage and Apple Pay from becoming popular.

 

[drewyboy]

Might be a bit late for Zelle with Apple Pay P2P coming this fall.

Why would you want to use Apple Pay p2p over Zelle? And a little late? Zelle is available now, not in 4 months.

Personally I'd rather deal with the source than a middleman.

 

[MrX8503]

Why would you want to use Apple Pay p2p over Zelle? And a little late? Zelle is available now, not in 4 months.

Personally I'd rather deal with the source than a middleman.

Because Apple Pay is native and built into iMessage

 

[jimthing]

In the UK, for consumer banking, we can just send money from bank ac to bank ac via a mobile telephone number (up to £300 [~$500] per ac to receive per day), via any of our banks' mobile apps.

Or just use 8 digit ac# + 6 digit sort code via the FP (Faster Payment) system, in app, into the £thousands, as many transfers as wanted: all rec'd instantly.

Or our instant CHAPS system is needed for really large transactions like £100,000s+ (chargeable per transaction at ~£20-30 fee), which typically involves going into bank personally with ID to authorise.

(Obviously, large companies have furthur specialised facilities for their large banking transfer needs.)

Don't you US guys have similar interbank systems (at least like the first of those two above; mobile & FP), for your everyday consumer banking... weird.

Sorry, but is something similar to my post above possible in the US (non-third party app, native interbank cell# payments and/or FP kind of thing)... no one answered, and it's interesting for us non-US peeps...

 

[desertman]

At least up to now this whole system is - in my not so humble opinion - nothing but ridiculous if you compare it how money gets transferred i. e. in Germany from account to account since 50 years (using the sender's and the recipient's names and bank account numbers).

I have accounts with Chase Bank and with Bank of America. Before I started to use this revolutionary new way of transferring money I used the same email address for all of my bank accounts. With clearXchange (now called non-sense-making "Zelle") that was not possible anymore because with this system an email address can only be linked to one bank account - as if the makers of this system never considered that many if not most people have multiple bank accounts.

It would have been easy to link "name" plus "bank" plus "email address" instead of just "name" and "email address." However, this would have required thinking and consideration - and why would a bank uses these rare and highly intellectual means to make the life of their customers easier?

I have not checked how this will work now when cell phone numbers are being added as identifiers. Will I need a second cell phone with a second cell phone number to be able to use the system? I guess so, and it's truly idiotic.

 

[Andrew Twenty]

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'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.
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."
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.

Article Link: Peer-to-Peer Payments Service 'Zelle' Debuts With Support From Major US Banks for Speedier Transfers

[doublepost=1498301126][/doublepost]Does Zelle use Visa Direct or MasterCard MoneySend to do interbank transfers between members? Seems like Visa and MC guys need to revise their strategy for P2P finally..

 

[Rigby]

At least up to now this whole system is - in my not so humble opinion - nothing but ridiculous if you compare it how money gets transferred i. e. in Germany from account to account since 50 years (using the sender's and the recipient's names and bank account numbers).

Not comparable. "Ueberweisungen" in Germany aren't instantaneous (they take at least one business day). You also need to either provide a routing code ("Bankleitzahl") in addition to the account number, or use the new IBAN number scheme (which uses 22 (!) digit account numbers). Is that really more convenient than simply using someone's email address?

I have accounts with Chase Bank and with Bank of America. Before I started to use this revolutionary new way of transferring money I used the same email address for all of my bank accounts. With clearXchange (now called non-sense-making "Zelle") that was not possible anymore because with this system an email address can only be linked to one bank account - as if the makers of this system never considered that many if not most people have multiple bank accounts.

But why can you not simply pick one account to receive P2P payments? Anyway, this problem is very easy to solve by using email aliases (e.g. most major email providers understand "+" aliases these days, so you could use something like "johndoe+chase@gmail.com" for the second account).

It would have been easy to link "name" plus "bank" plus "email address" instead of just "name" and "email address."

Yeah, but what do you do if someone has two checking accounts at the same bank? Seriously, this is meant to be a *simple* payment system.