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The outside disrupter was supposed to be Apple Pay, but that didn't work and now Apple just issues credit cards (through Goldman Sachs). Visa/MC has such a monopoly stranglehold that getting kicked off their Network is tantamount to going broke. There are esoteric options aka Bitcoin, money order, check, but if being able to accept credit cards makes this drastically more difficult. (Ask the legal cannabis industry how it's going.) More modern attempts at disruption - Zelle/PayPal/Venmo are totally at the mercy of the banks. Who are quite happy with the status quo.

Apple Pay charges a fee as well. It also isn’t a payment system but a tokenization system similar to the chip on credit cards. Zelle was created by the big bank which is why you don’t see it at the small local banks. None of the competitor banks(fintech) have zelle support and I guess this isn’t their choice. They have to move money by ach with is much slower.

Any payment/money movement system needs a license and you’re still bound by federal rules on AML and KYC. It makes it hard to support the cannabis industry. AML laws will force you to report large cash movements.

They may be referring to Apple Pay Cash, which is an iMessage-based venmo style service where you cash out via ACH or pay in stores using your Cash balance.

Small banks can integrate zelle, it’s their choice they’re not being locked out

0.75 per transaction locks out the small banks. It would be the most expensive way to transfer money.

I wasn’t aware of the cost TBH. I guess they can always develop their own zelle substitutes if they feel it’s worth it, not sure the economics of that are in their favor. Just saying you can’t ignore the upfront investment the builders put into creating and maintaining it while also pointing to the unit costs they charge the network partners. I’m sure it’s all negotiable with volume.

Uhh my bank’s $30 to wire fee would beg to differ. Literally any fee less than that for a same-day transfer is worth it.

That’s what the banks pay to use zelle.

The $30 wire fee is what a bank charges you to make money and dependent on the bank. Underlying systems near free to use like ach for domestic wires.

My point is the bank could easily pass the cost onto the customer.

Zelle is just a facade on top of ACH.

The outside disrupter was supposed to be Facebook currency and I am glad it didn't happen as Facebook has enough power already and this would starting to go in WeChat direction.

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