how does zelle work

Zelle is a mobile payment system. It was created on the basis of mobile payments, currently it is available in the mobile applications of several banks or the direct Zelle application. In practice, Zelle is a several-digit code displayed by the application that can be used to accept a transaction or send a certain amount to another person in an easy and pleasant way.

What is Zelle

Zelle was founded on the initiative of several banks (Bank of America, BB&T, Capital One, JPMorgan Chase, PNC Bank, US Bank and Wells Fargo) as a tool to facilitate cash transfers between users. The application offers a quick and easy way to transfer cash from account to account in just a few minutes.

The brand was initially known as clearXchange and was used for mobile payments between members of financial institutions and websites. The application launched in 2011 was the property of Bank of America, JPMorgan Chase and Wells and Fargo. In 2016, the company was sold under Early Warning Services in January 2016. Less than a year later, clearxchange changed its name to Zelle.

How Zelle works

Users can transfer funds to other application users, or send a payment request. The application remains in direct competition with PayPal and Venmo payments. Admittedly, Venmo is a larger and more popular application in terms of brand awareness, marketing activities and active users, while Zelle conducts much larger volumes of money transfers – in the first year it was about $ 75,000,000.00 for 2017.

zelle rules

Zelle has a group of serious business partners, including MasterCard and Visa, including well-known American brands such as CO-OP Financial Services, FIS, Fiserv, and Jack Henry & Associates. In addition, he works with many financial institutions.

How to use Zelle

To use Zelle services, all you need to do is find apps on Google Play for android or App Store for iOS devices. We download the application and create a user account on it, if we use the bank application that already supports Zelle transfers, we can skip this step.

We choose the user to whom we want to transfer funds to the account, we can do it using his e-mail address or the phone number of the trusted recipient.

We choose the payment amount and enter it in the application. If the recipient is a directly registered Zelle user, the money will be immediately transferred directly to his bank account. The transfer usually takes up to several minutes. If he is not an active user of the program, he will receive a notification explaining how he can complete the transfer in a quick and easy way.

There is one restriction, the user must have a bank account in the United States to be able to operate the application and receive direct transfers.

The application allows you to transfer funds between users in the United States with unprecedented ease, it is worth remembering that in America transfers with the use of checkbooks are still quite popular, in which cash trading can take up to several days. In this case, the application significantly improves the functioning of cash flow between individuals.


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