Should Venmo be worried?
Came across an interesting read this morning so I thought I would share with you monkeys. Do you think Venmo has anything to be worried about with this new money transferring program being put on by the banks or is this just a flash in the pan?
After six years, the big banks have finally debuted "Zelle," their competitor to Venmo that works inside the apps of participating banks.Zelle is meant for casual person-to-person payments, like paying someone back for dinner or splitting a utility bill. All you need to send money to someone is their email address or phone number. If this sounds like Venmo, that's because it is very similar in functionality.
But the fundamental difference here is that Zelle is backed by over 30 of the biggest banks: Chase, Citibank, Bank of America, and so on. That encompasses over 86 million customers. Zelle also doesn't have its own app yet, but instead lives within the app of your bank, giving it the ability to easily send and receive money. A standalone app is coming later this year, however.
Zelle isn't the only new entrant into the market that could make Venmo execs nervous.
At WWDC last week, Apple announced that Apple Pay would support peer-to-peer payments in iOS 11, the new software update for iPhones and iPads coming later this year. The new Apple Pay payments feature will be integrated directly into iMessage, so iPhone users can send money while in a text message thread with a friend. To make sure these transactions are secure, Apple will use Touch ID to verify your identity. The money will go onto a Apple Pay cash card, which you can transfer to the bank.
This highlights an advantage that Zelle has over Venmo and Apple: If the bank of the person you're sending money to is part of the Zelle network, the funds will only take a few minutes to transfer. Venmo makes you "cash out" in a process that takes one to two business days. If the recipient's bank isn't in the Zelle network, however, there's a bit of an annoying claims process, which requires them to manually enter bank information.
The rollout of Zelle starts this week, but will continue over the next year. Here's a list of the banks that are participating in Zelle:• Ally Bank
• Bank of America
• Bank of Hawaii
• Bank of the West
• BB&T
• BECU
• Capital One
• Citi
• Citizens Bank
• Comerica Bank
• ConnectOne Bank
• Dollar Bank
• Fifth Third Bank
• FirstBank
• First Tech Federal Credit Union
• First Tennessee Bank
• First National Bank
• Frederick County Bank
• Frost Bank
• HomeStreet Bank
• JP Morgan Chase
• KeyBank
• M&T Bank
• MB Financial Bank
• Morgan Stanley
• PNC Bank
• SchoolsFirst Federal Credit Union
• Star One Credit Union
• SunTrust Bank
• TD Bank
• USAA
• U.S. Bank
• Wells Fargo
Venmo is owned by paypal. They will be okay.
Doesn't matter who it's owned by if it's less convenient.
Instant > Instant with a one day wait for ACH. Venmo should be a little worried. Domestic Wire Transfers are also at risk, IMO.
I would generally agree with this statement. However, PayPal recently entered into a friendly partnership with Visa which would allow Venmo users who link their Visa debit cards to their account to get instant payouts. I suspect PayPal will make similar dealings with MasterCard if not already in progress (MasterCard and Visa make up all of debit cards in US).
Zelle > Venmo, because it's instant, and Venmo holds it in escrow/one day auth before depositing.
Basically a universal Chase Quickpay for all banks involved.. Venmo's social media-esque platform is a hit/miss, you either think it's intriguing and fun or hate the fact that people see other's payments.
I feel like Venmo has great brand recognition and proven reliability, which is a serious advantage. The reason I'm hesitant to say that this "Zelle" will do well is because the whole email/phone number thing needed. The bank set up process through this method involves checking your bank activity to verify a deposit and withdrawal that is made to validate the email/phone number with the bank account. Not a lot of people enjoy going through that process so we will have to wait and see if it catches on. I think Venmo is safe in the near term.
Is Venmo going to be DISRUPTED @The Angel"? Also why did you change your name?
I think that Venmo is SCREWED and FUCKED, similar to Snapchat long-term. Both have COOL and FUN-TO-USE products, but the big dogs in the industry are going to take their market share. I needed to DISRUPT the NAMING ECOSYSTEM.
Probably got called out by mods that didn't have the heart to ban him outright.
Pretty much a killer. Will take over the few friends who insist on using chase quickpay as long as the interface is simple and intuitive
Keep in mind that the Chinese mobile payment market is over 50x the US mobile market. The amount of money processed on Venmo is infinitesimally small compared to the amount of money sent through Chinese companies like WeChat.
Usually companies that survive have proprietary IP, or offer a superior product/service that can't be easily obtained elsewhere, or have a massive user base that can't be easily replicated
Venmo is in trouble. So are hundreds of all these newfangled tech startups that are just riding the wave
Not to mention that there are these things called wallets that you can stuff with actual cash and use for all sorts of payments...instantly
It's 2017, only Baby Boomers use cash these days man. That number dwindles by the day.
I fucking love cash, and trust me I'm no Baby. Half the hole-in-wall food joints in the city are cash only, plus it just feels amazing
Someone like me is the ultimate challenge for any provider of all this tech stuff. I'm a late adopter (if that) and a Neo-Luddite. I shun technology wherever it's not immensely beneficial for my life, opting for the simpler and more 'authentic' experience. The smart phone is one example of where I've caved...although even that I question, as I waste so many hours each day checking email, dating apps, random garbage, which is a huge chunk of each day that I'm wasting and not fully experiencing the world
I refuse to use Venmo or even limit legacy Paypal. Most of my friends have BoA - don't get the point of the middleman. Are there people without checking accounts? Yes. But they are not a bunch of young people making a whole bunch of money and splitting checks.
Keep an eye on Venmo (Originally Posted: 10/20/2017)
Venmo is one thing you need to look out for. Its popularity is increasing day after day and it is proving to be a great positive for PayPal. PayPal posted strong third quarter results yesterday.
LOL college kids have known this for the past 5 years
People still use Venmo?
I use either Square Cash (because the UI is about 15x better) or Chase QuickPay - I only use Venmo when one of my friends for some reason insists on using it.
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