[monkeywork]

It sounds very much like some of the Interac services that we have here in Canada (and have had for ages). We can do what is called "email money transfer" where as long as I know your email address I can go into my bank app, transfer money to you and it will automatically show up in your bank account.

[mighmi]

The US already has Zelle which does this. However the roll out was botched, many banks don't seem to use it and most people (including me until a few months ago) thought it was a paypal competitor - but it's actually a government based system system which renders free transfers between bank accounts (your own or others) with a cap of 3 or 5k/month.

The interface is very weird. Many people can't figure out how to use it. I ended up having to set up new email addresses and assign them to different bank accounts in order to distinguish my accounts.

[ValentineC]

> but it's actually a government based system system which renders free transfers between bank accounts (your own or others) with a cap of 3 or 5k/month.

Zelle is run by Early Warning Services [1], a joint venture between Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo.

It's most definitely not "government-based".

[1] https://en.wikipedia.org/wiki/Zelle_(payment_service)

[pjg]

Zelle has many limitations:

1) The recipient needs to download the app and sign up. How does the Payor know whether the recipient has Zelle app or not

2) Even with the app, there are only about 50-100 banks that allow Zelle transfers. If someone's bank does not offer Zelle they are directed to enter their Debit Card number using "Push to Card" to receive the funds. While the funds land up in the bank account instantly either way, some Debit Cards have limitations and will not be enabled to receive funds

3) Zelle is essentially a "messaging layer" i.e. the actual settlement happens overnight using ACH rails. As a result the sending as well as the receiving bank are taking some risk in terms of allow the recipient to withdraw money when the underlying settlement hasn't happened. If the settlement fails the receiver's bank will need to claw bank the money from the receiver As a result there are some really low limits on daily transfers i.e. between 1-2K/day for most banks

4) Above all Zelle (like most other payment rails ) is a push system i.e. one can push money using Zelle. One may not pull money using Zelle

[ollien]

BTW,

> 1) The recipient needs to download the app and sign up. How does the Payor know whether the recipient has Zelle app or not

This is not strictly true. You can still send money to bank accounts directly, but it's not instant.

[sam345]

none of this is accurate as far as I understand it. it is a private system. it does not happen overnight it is instant. ETC

[matchbok]

Zelle is most certainly not a government service.

[refurb]

Neither is Interac in Canada.

[baby]

You’re heavily limited in terms of transfers also. I need to split my rent over several payments over several days using zelle. It really sucks compared to something like SEPA

[_delirium]

This depends entirely on the bank. Chase, for example, has a Zelle outgoing transfer limit of $2k/day and $16k/month for regular consumer accounts. There's a higher limit of $5k/day and $40k/month for their higher-end and business checking accounts. Other banks' limits are higher or lower than that.

[wenc]

Fidelity Investments is one of the biggest financial institutions in the country. Zelle does not support it or vice versa (not sure which way).

[sam345]

Fidelity is not a bank.

[wenc]

The cash management account is operated by UMB which is a bank. Also does Zelle only work with banks?

[tomComb]

Except Interac is controlled by the big banks, for the big banks. To the best of my knowledge.

[monkeywork]

Interac is a company formed by the big banks in Canada to link all their networks and help insure we have uniformity. I believe it started as a way to standardize ATM machines and has grown to a bunch of other things and is largely why Canada was able to so quickly and completely adopt chip and pin and tap to pay literal decades before the US did.