Banks Take On Venmo by Rebranding Person-to-Person Payment Service
Major banks are rebranding their person-to-person (P2P) payment system in the hopes of taking down PayPal’s P2P juggernaut, Venmo.
Early Warning, which runs the clearXchange P2P system for Bank of America, JPMorgan, Wells Fargo, Capital One and US Bank, has decided to rename the service Zelle, which is either short for Gazelle or means “best girl ever,” according to Urban Dictionary.
Whatever its exact meaning, Early Warning hopes this name appeals more to consumers. clearXchange was initially promoted as a corporate brand. However, since deals have recently been struck with Visa and MasterCard, the service is now more useful for consumers.
Zelle allows users to send funds directly from their bank accounts to another person using only an email address or mobile phone number.
The Wall Street Journal reports the Zelle brand will be unveiled in October. Banks have not yet announced how Zelle will fit into their existing portfolios. Some already have a P2P service, such as JP Morgan’s Chase QuickPay.