Big Banks Fall Behind, Try to Compete With Venmo (Watch) – Small Business Trends


Published: Oct 25, 2016
by Annie Pilon
In Technology Trends
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U.S. banks are trying to take a chunk out of Venmo’s business. The money-transfer app has gained a lot of popularity in recent years. And banks are worried that it could cut into their business.

So big names like JPMorgan Chase & Co., S.S. Bancorp and Citibank have teamed up to create an app called Zelle. The app will have similar functionality but could stand apart because of its support from major financial institutions. Users will also get immediate access to funds for free on Zelle, which is something you don’t get with other transfer apps.

However, it’s still going to be a difficult road for the new app. Venmo, Square Cash and others have already made names for themselves in the space. And customers who are satisfied with those apps will need a significant reason to make the switch.

If those banks had thought ahead and considered different ways to make banking easier for mobile consumers before Venmo and others had gained popularity, they likely wouldn’t have this issue.



Late Mover Disadvantage

And that goes for businesses of all sizes. There are always ways you can improve the experience for your customers. And if you don’t jump on those opportunities, someone else will. Then you could be fighting to keep up.

Image: Venmo


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Annie Pilon

Annie Pilon is a Senior Staff Writer for Small Business Trends, covering entrepreneur profiles, interviews, feature stories, community news and in-depth, expert-based guides. When she’s not writing she can be found on her personal blog Wattlebird, and exploring all that her home state of Michigan has to offer.



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