Several US banks on Monday announced that they would join forces to launch a new application of mobile payments between individuals, intended to compete with services like Venmo (a subsidiary of PayPal).
The new application, called Zelle, will be launched in 2017 and will allow consumers to send or receive payments instantly using a smartphone.
“Zelle will transform the way people manage their financial lives, by providing faster, safer and more convenient options to make payments to their friends and family,” says Paul Finch, the boss of Early Warning, a company specialized banking security, which made the announcement Monday.
As banks are directly involved, the service will allow the recipient of a payment an immediate access to his or her money. Currently customers have to wait a day or two as is the case with existing services.
Zelle will be open to all US banks, and accessible to some 76 million consumers using mobile banking.
Currently, 19 financial institutions have already joined the network Zelle, the big banks: Bank of America, Citi, Chase, Morgan Stanley, and Wells Fargo. The bank card networks Visa and MasterCard are also partners of the service.