USAA and Frost Join National Mobile Payment Network to Fight Venmo
Style Magazine Newswire | 6/30/2017, 1:29 p.m.
Jimmy Stead of Frost Bank
Source: Bizjournals.com/sanantonio
Two of San Antonio's largest financial institutions have plugged into a national virtual wallet network that enables customers to transfer money without fees. USAA Federal Savings Bank, Frost Bank and more than two dozen other big players in the financial sector plan to join the network, called Zelle, by the end of the month. USAA told the Business Journal that it expects to launch money transfers through its mobile app using Zelle soon. Since 2012, USAA has used its own proprietary technology allowing members to send on-demand money without added fees. The subsidiary of Cullen/Frost Bankers Inc. rolled out functionality within its mobile app to tap into this payment network in August 2016. Zelle is a direct way for banks to compete with Venmo, a virtual wallet startup owned by PayPal Inc. The company enables mobile payments between individuals with an email address and verified bank account. Customer money is still routed through the automated clearing house, or ACH, but each transfer takes only two days to process.
