Banks Consider Zelle as Card Alternative
A group of banks that own money transfer service Zelle are contemplating promoting the payment option, which competes with card networks Visa and Mastercard. The move would open growth opportunities for Zelle, which doubled its number of transactions in 2021 driven by the pandemic.
Collectively, banks and card networks earn billions each year from fees merchants pay when shoppers pay with credit and/or debit cards. A payment option that moves funds directly between consumers’ bank accounts and merchants’ bank accounts, while convenient to shoppers, may jeopardize a significant revenue stream of revenue for FIs as a whole.