[2023-02-04] CNBC - Why The Big Banks Created Zelle
Why The Big Banks Created Zelle
CNBC
Saturday, February 4, 2023
#CNBC
Competition among peer-to-peer payment apps like Venmo, PayPal, Cash App, and Zelle has been heating up for the past 10 years. The big banks tried to compete in the space when PayPal first came on the scene 25 years ago, but their business models failed. Now, Zelle, a seven-bank platform, is outpacing its rivals in average transaction value. But a rise in reported fraud activity recently got the attention of Congress, with allegations that the banks aren’t supporting those affected customers.
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