There are few apps we love more than Venmo. Since it landed on our phones, our nights out have gotten SO much easier to pay for. Splitting a check at the restaurant is no longer an awkward ordeal. We don’t end the night still owing anybody money. It’s great! But we just learned that a competitor is coming along to take Venmo DOWN.
Last night, some of the country’s biggest banks announced that they are putting together an app that could mean the end of Venmo. Zelle, as the app will be called, is backed by Chase, Citibank and Bank of America, among others. The app will work just like Venmo except it will be rooted in the owner’s actual bank account, meaning that it’s going to be even faster than Venmo.
When users want to exchange money, it won’t go through a Venmo account and sit there until someone decides to deposit it. With Zelle, money will flow instantly and directly from your friends’ accounts to yours. Score!
The US lags far behind other countries in terms of modern, instant banking. Although some banks (example: Chase) have instant money-exchange services, they don’t work from bank-to-bank. If you’ve previously tried to use your bank’s app to send money, you know how difficult it can be to give your friends the money you owe them when you’re operating from different banks. Zelle will be a common service provider for most big banks across the country.
Will you keep using Venmo or switch over? Let us know @BritandCo!
(h/t Recode; photo via Getty)