[toomuchtodo]

Zelle is owned by a consortium of the largest US banks [1], and does much more volume than Venmo (because its built into the UX of those participating in Zelle's real time payment network [2]). Congress strongly encouraged the Fed to develop FedNow to prevent Zelle from keeping smaller banks out of instant payment infra. FedNow will eventually replace the ACH system.

Hot take: banks being banks, they'll crowd out fintechs because fintechs aren't chartered banks regardless of the UX (which is why Bancorp Bank is the underlying for so many fintechs).

[1] https://techcrunch.com/2017/06/12/zelle-the-real-time-venmo-...

[2] https://www.zellepay.com/get-started

[spinax]

> FedNow will eventually replace the ACH system

Now that's interesting - does that imply that the clearing delays in transfer (say your US Bank to your Brokerage, ~3 days ACH) will disappear and FedNow makes that an "instant" (within 1 day let's say) settled transfer? Very intriguing.

[mikeyouse]

Yep - the goal is to move to ~real time transactions so settlement is instantaneous for most transactions with a much shorter window for settlement for those txs over some threshold (initial working docs said $25k, but it'll likely be larger by the time it rolls out).