Financial Services

Bank of America Is Going Head-to-Head With Venmo, Kind Of…

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Bank of America is ready to compete with Venmo by introducing a Zelle widget. The Zelle widget can be added to the home screen of a mobile device, similar to a weather widget, so that bank customers can send money. While the widget eliminates the need to open BofA’s mobile banking app, users must have the BofA mobile app installed and authenticate their identity through biometrics or passwords.

The widget shows that Zelle is squarely focused on the customer. It understands that they are used to a fast-paced world, whether flipping through short TikTok videos or placing a mobile coffee order. The fewer steps it takes to do something, the better. Zelle also appreciates customers’ privacy concerns, which is why you can’t see one’s bank balance via the widget.

Zelle is a major peer-to-peer payment network operated by Early Warning Services. Early Warning Services is a private company owned by BofA, BB&T, Capital One, JPMorgan Chase, PCN Bank, U.S. Bank, and Wells Fargo.

Zelle processed more than $120 billion across 450+ million transactions during Q3 2021. The total value of payments sent during the third quarter increased 51% from a year ago.

BofA has more than 15 million customers using Zelle, which makes up one-third of all Zelle users.

If BofA wants to compete with Venmo or Block’s (previously Square) Cash App, Zelle’s widget is a step in the right direction. And with continued innovation, growth will continue at a face pace.

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Bo Berg

Bo Berg specializes in strategy, innovation, systems architecture, and technology transformation. With over 20 years of experience, he has led digital transformation efforts to revamp financial service businesses by adopting digital technologies. He has provided strategic leadership for companies to incorporate blockchain technology into their commercial and retail banking applications.

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