We posted this for our employees' awareness...
Are we getting Zelle?
With Wells Fargo's adoption of Zelle, many of you have seen the fun ads on TV about this new P2P (person to person) real time payment option and may be thinking, "Hey can we get that??". The short answer is yes, it is available to us. FiServ has parterned with Early Warning Services (creators of Zelle) to bring Zelle to all FiServ banks. I will be attending FiServ Forum in less than a month and this is at the top of my list to look into and see when this is available to us, what the cost is, etc...
In the meantime, we do offer our clients a P2P option today in Popmoney. This is offered through Checkfree on our bill pay site and clients have access to Popmoney through our mobile app as well. Our clients can set up recurring transactions and we do not charge for "normal" delivery which can take 2 to 3 days.
Similarities between the two systems include the fact I only have to have my friend's mobile number or email address to initiate a payment, I can initiate split payments to several folks at one time and there is a separate app that a person can download to enroll in the service(s) if their FI does not currently offer Zelle or Popmoney.
The main differences are as follows:
1) Zelle offers a real time payment rail for recipients and receivers who are both already enrolled in Zelle. This is a very powerful selling point. For instance, if Sally and I are both enrolled in Zelle today and I owe her money for a gift, I can send her the money and she would receive it into her checking account within minutes. This money would be available to her immediately as Zelle travels over the debit card rails. With Popmoney, I can send Sally a payment but it may take 2 to 3 business days to reach her account via ACH rails unless I choose the next day payment option. The next day payment option follows the same day ACH rails and each of our banks charge for that service.
2) Zelle is a shared brand across many financial institutions including the big guys such as Wells Fargo. This is very similar to Kasasa. There is power in a shared, recognizable brand. Popmoney relies on each FI to provide marketing so there is no shared brand awareness. Zelle directly competes with Venmo to keep payments within our bank's payment system.
We will keep everyone up to date on what I find out but please let clients know that we do offer P2P payments today and, if you haven't already, please take a few minutes to learn about Popmoney within our bank's online education center.
------------------------------
Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
------------------------------
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Original Message:
Sent: 05-01-2018 09:41
From: Barb Rehm
Subject: Tuesday Topic: Zelle's Growing Pains
Zelle, the digital payment platform launched last summer by a consortium of banks, has been humming along, adding thousands of new users daily. Named after a gazelle for its speed, the service quickly overtook PayPal's Venmo, with American Banker reporting Zelle processed 85 million transactions worth $25 billion in the first quarter alone.
The New York Times had a big piece in its Sunday Business section warning readers that hackers and con artists are using Zelle to rip people off.
So far 19 banks are using Zelle with 100 more in the process of offering it. The CEO of an early adopter, FirstBank in Colorado, told American Banker that Zelle is an essential offering. "When you talk to consumers and see their usage of Venmo, it's pretty clear that this is a table-stakes offering."
Do you agree? Does your bank need to offer Zelle to meet your customers' demands?
------------------------------
Barb Rehm
Senior Managing Director
Promontory Interfinancial Network
Arlington VA
------------------------------
Are we getting Zelle?
With Wells Fargo's adoption of Zelle, many of you have seen the fun ads on TV about this new P2P (person to person) real time payment option and may be thinking, "Hey can we get that??". The short answer is yes, it is available to us. FiServ has parterned with Early Warning Services (creators of Zelle) to bring Zelle to all FiServ banks. I will be attending FiServ Forum in less than a month and this is at the top of my list to look into and see when this is available to us, what the cost is, etc...
In the meantime, we do offer our clients a P2P option today in Popmoney. This is offered through Checkfree on our bill pay site and clients have access to Popmoney through our mobile app as well. Our clients can set up recurring transactions and we do not charge for "normal" delivery which can take 2 to 3 days.
Similarities between the two systems include the fact I only have to have my friend's mobile number or email address to initiate a payment, I can initiate split payments to several folks at one time and there is a separate app that a person can download to enroll in the service(s) if their FI does not currently offer Zelle or Popmoney.
The main differences are as follows:
1) Zelle offers a real time payment rail for recipients and receivers who are both already enrolled in Zelle. This is a very powerful selling point. For instance, if Sally and I are both enrolled in Zelle today and I owe her money for a gift, I can send her the money and she would receive it into her checking account within minutes. This money would be available to her immediately as Zelle travels over the debit card rails. With Popmoney, I can send Sally a payment but it may take 2 to 3 business days to reach her account via ACH rails unless I choose the next day payment option. The next day payment option follows the same day ACH rails and each of our banks charge for that service.
2) Zelle is a shared brand across many financial institutions including the big guys such as Wells Fargo. This is very similar to Kasasa. There is power in a shared, recognizable brand. Popmoney relies on each FI to provide marketing so there is no shared brand awareness. Zelle directly competes with Venmo to keep payments within our bank's payment system.
We will keep everyone up to date on what I find out but please let clients know that we do offer P2P payments today and, if you haven't already, please take a few minutes to learn about Popmoney within our bank's online education center.
------------------------------
Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
------------------------------
-------------------------------------------
Original Message:
Sent: 05-01-2018 09:41
From: Barb Rehm
Subject: Tuesday Topic: Zelle's Growing Pains
Zelle, the digital payment platform launched last summer by a consortium of banks, has been humming along, adding thousands of new users daily. Named after a gazelle for its speed, the service quickly overtook PayPal's Venmo, with American Banker reporting Zelle processed 85 million transactions worth $25 billion in the first quarter alone.
The New York Times had a big piece in its Sunday Business section warning readers that hackers and con artists are using Zelle to rip people off.
So far 19 banks are using Zelle with 100 more in the process of offering it. The CEO of an early adopter, FirstBank in Colorado, told American Banker that Zelle is an essential offering. "When you talk to consumers and see their usage of Venmo, it's pretty clear that this is a table-stakes offering."
Do you agree? Does your bank need to offer Zelle to meet your customers' demands?
------------------------------
Barb Rehm
Senior Managing Director
Promontory Interfinancial Network
Arlington VA
------------------------------
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