What Did They Launch? Zelle, a mobile banking app to compete with Venmo, Paypal
As digital consumers, we were unimpressed when hearing about yet another mobile banking app. Between Venmo, Paypal, Apple Wallet, Facebook payments, and banks’ own mobile apps, and a seemingly endless list of other methods to make mobile payments, there did not seem to be a need for another app in this space. Certainly not one that was getting so much buzz. As potential users, we weren’t excited for the day that a friend would decide that THIS was now the only way they wanted to be paid and so we’d have to give all of our sensitive banking information to another new company and find room for another app on our phones.
And yet from a business perspective, as this category continues to rapidly grow, we knew that there was plenty of room for one more.
How Did They Launch It? Through their own app and the apps of their partner banks (Did we mention those banks also own Zelle?)
Unlike its predecessors, Zelle, was sold, via partnership, directly to the major banks and has therefore been integrated into each bank’s own app. For consumers, this eliminates a lot of the hassles associated with stand-alone apps like PayPal. There is no confusion about which account the money is coming from or going to. Delays from receiving the money in the app and in the users primary account. And perhaps best of all, the sender and the receiver of money can use their own banks apps, even if the two users don’t use the same bank. No need to download a new app or feel like we’re giving all of our information to a strange new company. We ARE still giving them our info, but when we do it through our own bank’s app, it feels *just* a little safer.
What Do We Love? The right partners can make or break a market entry
As Zelle has already closed in on Paypal’s volume within a year of its launch, the new mobile payments solution is showing that the right partners–particularly distribution partners–can tackle even a behemoth of a market leader. And while it may feel like a first in mobile payments, this isn’t unusual in other categories. Distribution partners often hold the keys to industries. Think of a fast food chain deciding to change which brand of soda they sell. Or the app store discontinuing a category of apps. Netflix adding an indie film to their platform or saying no to a big budget movie. And where would the pharmaceutical industry be if doctors didn’t prescribe medications? Distributors are gatekeepers who can open the door to our users.
Influencers, affiliates, and media partners can also have powerful sway in moving a user base. And when they own a piece of the action, they are more vested in its success. Literally. This has been true for William Shatner as the face (and voice) of Priceline. Or Kate Hudson modeling for Fabletics. Partners will move more mountains for us when they share financially in our success.
So fine, we’ll probably use Zelle.
