Competition among peer-to-peer payment apps like Venmo, PayPal, Cash App and Zelle have been heating up for the past 10 years. The big banks tried to compete in the space when PayPal first came on the scene 25 years ago, but their business models failed. Now, Zelle, a seven-bank platform, is outpacing its rivals in average transaction value. But a rise in reported fraud activity recently got the attention of Congress, with allegations that the banks aren’t supporting those affected customers.
Watch the video above to learn more about why the banks created Zelle and whether the app can hold its own against the the battle to win in the peer-to-peer payment space.
0:00 — Introduction
01:27 — Business model
02:47 – The rise of P2P apps
05:45 — Fraud allegations
10:07 — Fierce competition
Produced by: Charlotte Morabito
Edited by: Nic Golden Henry
Additional Camera by: Jordan Smith, Talia Kaplan
Graphics by: Alex Wood, Christina Locopo
Supervising Producer: Lindsey Jacobson
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Why The Big Banks Created Zelle