What The Zelle Is Going On?
“Should Zelle be used for retail payment? It already is! There is a pressure in a number of markets to look at the use of account-to-account (A2A) payments for retail transactions, bypassing traditional card payments by allowing payments to go directly from consumer bank accounts to retailer and service provider bank accounts. In the US, for example, stakeholders are beginning to look at whether to extend Zelle in this direction. Zelle continues to grow strongly (Bank of America BAC -1.4% customers made more Zelle transactions than wrote paper checks for the first time ever last year) and it is therefore no surprise that discussions are heating up. (According to the Wall Street Journal, Wells Fargo WFC -1.8% and Bank of America are in favour of expanding into retail while JPMorgan is not convinced the time is right.)”