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00:00:01
>> Chase, Wells Fargo, Bank of America. Just three of America's biggest banks that are joining forces to take on a common enemy. Tech companies with apps that are encroaching on their turf. Banks, announcing Monday, that they will start using a digital peer-to-peer payment system called Zelle. Reuters reporter Anna Irrera says that by next year this time, over two dozen banks and credit unions will have rolled out the service to tens of millions of customers.
00:00:30
>> They have an already large existing network of clients, which means that you'll just already have it on your phone if you have a, for example, Chase Banking App. So, it won't be restricted to people who download a specific app, but it could be any one of their customers.
00:00:45
>> It's that ease of use that banks are well, banking on, without having to set up a whole new account in another set of passwords. Customers can send money instantly with just a few taps on a mobile phone. That puts apps like PayPal's Venmo and others from Facebook, Alphabets Google and even Apple's planned iMessaging money transfer service which is backed by Apple Pay at a disadvantage since those rely on both sender and receiver downloading the very same app.
00:01:18
Early adopters of Zelle, Chase, Wells Fargo, Capitol One, and US Bank combined account for half of all checking accounts in the US. So with so much up for grabs why did it take six years for the consortium to finally go mainstream?>> Technology is always an impediment when banks want to do something innovative because they have very old technology.
00:01:39
Generally running, and new ones, but it's just a large stack of technology they say. But, in reality, I think the bigger inertia came from just having to sit down and agree. And every bank have different interest. They may have different fees they charge.>> The good thing, most banks aren't planning to charge for transfers made on Zelle.
00:01:56
One more way the banks hope to disrupt those payment apps which of course charge their customers nothing.