Why The Big Banks Created Zelle

I like Zelle because the money goes directly to the bank account. The only thing to keep in mind is to only use it to transfer money to ppl you know, not random guys on the internet

US is always lagging when it comes to digital infrastructure stuff like this. Quite a number of countries have already been using nation-wide p2p for many years now.

“It changed the world” lol! It changed US only. Almost all developed countries already has bank to bank tranfer online almost a decade before zelle. When I was in US in 2018, their online transfer does not even transfer on weekends. It waits until Monday. 😂😂😂

On the one hand, direct bank-to-bank transfer would be a great way to avoid the pitfalls of unregulated or loosely regulated spaces like fintech. On the other hand, linking the ability to transfer cash to the choice to directly store that cash in one of seven banks is a massive problem. All of these institutions are attempting some version of regulatory capture through their political donations, and all of these institutions have histories of abusing customers so much that the government had to step in. Remember overdraft fees? Putting more money, power, and control in the hands of big banks is not in any consumer's best interest.

I use Zelle to pay my rent and neither my landlord or I, have an account with any of those banks. Also, Zelle is integrated directly into my banking app, it's very convenient. That being said, the moment they start charging a fee, I'm gone and so is everyone else that I know uses the service.

The US is very late to the application of payment through digital means. In 1993 Finland began to strongly phase out the use of checks as a means of payment and established an electronic payment, first by telephone, then by the internet. From 2010 to the present, all of my payments took place via the internet or cellular smart phone. Never once was a fee charged as it was covered by general banking maintenance fees or other profits earned by the bank. Banks in the US are very cavalier with security of offering credit, the use of credit and debit cards and payment systems. I always had to supply a pin number to pay when using my credit card in Finland, and for purchases over 50 euro when using a debit card.

India's UPI (unified payments interface) is the king when it comes to P2P payments. Major contributor in making India a digital economy

India has the best P2P payment systems in the world currently known as UPI. The major reason for this is because our Central reserve Bank of India strictly regulates all the other banks. UPI is a protocol and any bank/merchant/3rd-parties can implement it in their apps. So direct bank to bank transfer to any bank in India is possible. 90% of transactions happen within 1 second. There are some features found in UPI which cannot be found anywhere. Offline transfers (through USSD), transfer through phone numbers or email like UPI addresses, free transfers (and it will stay like that for a long while), international transfers (to select few countries). India has also launched its own credit and debit cards (Rupay cards) to rival Visa and MasterCard.

In Brazil we have Pix, which is the protocol and is managed by the Central Bank, and all banking institutions are obliged to incorporate it to their systems and offer it for free to all customers, it was a social revolution and made a lot of people banked. For me it is always curious how everything in the USA is very backward for a country that calls itself the #1 in the world. And you can transfer to any bank, pay any bill, the whole process is absolutely free and done within 1 minute and confirmed on the spot

Scan the QR code or send $1 and confirm the intended recipient received it before sending the rest. There, just solved the fraud issue. Problem is that no matter the guardrails you put in place to protect the consumer, human stupidity will always find a way to smash through them.

NCPI (2008) is operating Unified Payment (UPI) system since April 2016 in India. It's similar to Zelle. No independent revenue source with major Indian banks and government being it's collaborative owner.

"engagement tool", "revenue generating machine", "payment space", "auction space". Why can't business people just speak with clarity. It's always too much pointless business jargon. Everyone's trying to look so damn smart and professional.

Well we have UPI, unified payment interface in India. Started in 2015 I think, before that P2P has one or two days delay. But now with UPI it's instant, and now it's the standard payment mode.

So is Zelle like Interac E-Transfer in Canada? That system works pretty easily and has been around for years.

In India, no one in metro cities carries cash. We all use UPI. Even street side vendors and vegetable hawkers accept digital payments. Also UPI charges 0₹ for all transactions.

We've had this for the last 15 years in the UK. It didn't require a joint venture between banks. Goodness me, this country is very archaic in certain areas.

Last year, after the merger of BB&T and Suntrust was completed to form Truist, small business owners reported they’ve had tens of thousands of dollars stolen from their Truist bank accounts.

Crazy to think America doesn’t have straightforward P2P transferring between banks. Here in Australia we have had apps similar to Zelle for the last 5-10 years. In additions these apps are technically not necessary as all banks in Australia have the ability to transfer money between the banks directly, note sometimes with a 2-3 day delay. A couple of years back a standardised p2p payment structure called Osko was adopted by most banks in Australia which allow for near instant transferring directly from different banks. Could someone explain why America lags behind in the payment technology? (I know America only widely adopted near field activated payment terminals a couple of years ago (Apple Pay or over here we call it PayPass) It is obviously not because of technology limitations

Korea has been using feeless P2P transfer for 15 years, and the US is saying zelle an innovation 😆 🤣

In other countries, you just transfer from your bank account to their bank account. No additional 'unnecessary service' profit layers required.