America's Big Banks Connecting With Money Transfer App Zelle (video)

America's Big Banks Will Connect With Zelle | Tech Bet | CNBC.com:

Banks have announced Zelle as their product in the payment-transfer space. Zelle would be a direct competitor to Venmo, owned by PayPal, and includes features such as instant clearing of money from one bank account to another (video above published Oct 24, 2016)

Domains referenced:
  • zellepay.com
  • venmo.com
Auto-generated Transcript via YouTube.com:
0:00  America's biggest banks will be
0:01  connected through a new money transfer
0:03  app called Zelle will compete against
0:06  quite a few transfer apps that are
0:07  already in the market for joining us to
0:09  break all this down as Mark spoon our
0:11  editor-in-chief at tom's guide mark
0:12  thanks for joining us today thank you
0:14  let's talk about this app what is l how
0:16  many banks will connect with it or use
0:18  it and how does it work
0:20  sure so just imagine being able to send
0:22  your friends money for rent or for pizza
0:25  or for anything else as a direct deposit
0:27  right into their account using an app
0:30  and that's the idea behind shell they're
0:31  like you said there's a lot of
0:32  competitors out there but they have a
0:34  couple of advantages one is that they
0:36  have a lot of the major banks most of
0:38  them five of them including citi and
0:40  wells fargo and the there's not going to
0:43  be any transaction fee as part of this
0:46  instant deposit which is another feather
0:48  in their cap and I'm glad you brought up
0:50  some the competitors here venmo for
0:51  example which is owned by paypal I mean
0:53  there's already a verb out there i have
0:55  many friends who say that their venom
0:57  owing money from dinner for example
0:59  that's right so so I get why the big
1:01  banks want to have their own specific
1:03  service but how's it going to compete
1:04  against all of these other types of apps
1:06  are already out there
1:07  yeah i mean so you're right venmo has a
1:09  huge head start and depending on what
1:10  numbers you look at they could have
1:12  upwards of a million people that are
1:14  using it for a month already
1:15  and in the first quarter of a 2016 that
1:18  had 3.2 billion dollars and money
1:21  transacted among their users and that's
1:22  over a hundred percent increase from the
1:24  following year
1:25  what cell brings to the table is unlike
1:27  some competitors there isn't that
1:29  transfer fee for making an instant
1:31  deposit into someone else's account and
1:33  it truly is instant sometimes with venmo
1:35  and others it can take up to a couple of
1:37  days so that instant gratification
1:38  especially among Millennials is really
1:40  important because you want to make sure
1:41  that money is still there when taking
1:43  that transaction so and also obviously
1:47  but the support of the banks is is
1:48  really good for them but i also think
1:49  that Millennials could look at them with
1:51  a little bit of distrust because it is
1:53  run by the big banks as opposed to a
1:55  third party like paypal and in light of
1:57  all this and as especially this idea
1:59  that it's near instant clearing of the
2:01  money which to me would be key
2:03  yeah do you think she'll could actually
2:05  beat some of these rivals it could mean
2:08  I think a lot of it will depend on
2:09  marketing but at the same time you have
2:12  Zelle whose
2:13  they're stepping up their game and keep
2:15  in mind you know soon so the memo has
2:17  been out for awhile and they're adding
2:19  other features to their app like the
2:21  ability to use the your account when
2:24  you're making payments online and
2:25  through apps like they're working with
2:27  mantri right now for food delivery and
2:30  game time for a game tickets so in a way
2:32  they're trying to become more like Apple
2:33  pay and with shell not coming out until
2:35  2017 they're going to have to innovate
2:38  behind the scenes to make sure that
2:39  they're at parity with their rivals when
2:41  they finally come to market that's a
2:43  good point marks Punar thanks for
2:44  joining us thank you for watching I
2:46  Morgan Brennan have a great day

feedback & comments via twitter @DomainMondo


Domain Mondo archive