Watch out, Venmo – there’s another payments app on the rise.
Zelle is a year-old service that lets you digitally transfer money to someone else, no cash, checks, or wire transfers required. It sounds a lot like Venmo, but there’s one key difference: Zelle was created by the seven largest banks in the US.
Last summer, JPMorgan, Bank of America, Wells Fargo, US Bancorp, Capital One, BB&T, and PNC joined together to launch Zelle. Both Venmo and Zelle let you send money to friends instantly. The difference with Zelle is that you don’t have to wait to receive the money in your bank account.
This feature may have contributed to why Zelle is becoming so popular. According to eMarketer data, Zelle is now the most-used peer-to-peer payment app in the US, and is expected to grow more than 73% in 2018. By the end of the year, eMarketer predicts Zelle will have 27.4 million users, compared to Venmo’s 22.9 million users.
So what makes Zelle different from Venmo, and how can you start using it? Here’s everything you need to know.
The easiest way to get started with Zelle is to download the mobile app. Zelle will ask to use your location, but you’re allowed to skip that step.
Next, the app will ask you to enter your phone number.
From there, you’ll be able to see a list of the top banks that use Zelle. You can select your bank from the list, or view the full list available banks.
You can also search for your bank on Zelle’s website.
If your bank offers Zelle within its app, it will tell you when you click on the bank’s name. From there, you’ll do all your Zelle transactions inside your bank’s mobile app.
If your bank doesn’t use Zelle, or you’d rather use the Zelle app, you can enter your debit card information in the app.
Zelle says on its website that the service is secure whether you choose to use the Zelle app or your bank’s app.
If your bank has Zelle built into its own app, you’ll be automatically redirected. If that’s the case, there’s no need to keep the Zelle app on your phone.
Much like Venmo, you can use Zelle to send and request money. All you need is the person’s email address or phone number.
For some banks, there’s the option to set up recurring payments, which is convenient for splitting rent or bills.
You can also request money, and even set a due date.
But the best part about Zelle is that the money shows up in your bank account immediately. You don’t have to wait several days for it to arrive. Plus, there’s no fee for using the service.
Zelle will also keep a log of all your requests and transactions complete with names and dates, so it’s easy to keep track of your payments.
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