Welcome to Innovating Payments Top 3 News Headlines for the Week of May 6. In this issue, the U.S. government is weighing in on whether to treat Apple, Google, Venmo, and other payment apps more like banks, with heightened regulatory oversight. Also in the news, "in research exclusive to The Financial Brand conducted by Rivel in March 2024, among a national sample of banking consumers, mobile banking usage is a clear favorite, with 58% using their phone to bank most or all the time." Finally, Wells Fargo says U.S. authorities are investigating Zelle complaint handling.
Read on to learn more.
1. Apple, Google and Venmo Fight New U.S. Plan to Monitor Payment Apps (Washington Post)
The U.S. government is weighing whether to treat Apple, Google and PayPal-owned Venmo more like banks - and regularly inspect some of their operations - in a move meant to protect millions of Americans who now use their smartphones to pay at the register and send money to family and friends. But the prospect of heightened federal oversight has sparked deep and wide-ranging unease throughout the tech industry, triggering a lobbying offensive that aims to limit the government's power to monitor mobile wallets, accounts or other digital payment services. (Read more.)
2. As Mobile Surges, What's the Role of Web Banking? (The Financial Brand)
Digital banking solutions, specifically mobile and web-based platforms, have gained widespread adoption in the past ten years, as bank branches become less and less utilized. However, a pertinent question arises: Are consumers still actively utilizing web banking services, or has mobile banking emerged as the dominant preference, rendering web banking obsolete? Should banking institutions favor, innovate and push one platform over the other? (Read more.)
3. Wells Fargo: US Authorities Are Investigating Zelle Complaint Handling (PYMNTS)
Wells Fargo said Thursday (May 2) that U.S. authorities are investigating the handling of complaints about Zelle. This disclosure in a filing with the Securities and Exchange Commission (SEC) follows a similar statement by J.P. Morgan and comes amid scrutiny of Zelle's peer-to-peer (P2P) payment network by both regulators and legislators, Bloomberg reported Friday (May 3). In Wells Fargo's Thursday SEC filing, the bank said: "Government authorities have been conducting formal or informal inquiries or investigations regarding the handling of customer disputes related to fund transfers made through the Zelle Network." (Read more.)
Should payments apps like Google, Venmo, and Apple face heightened regulatory oversight? Should banking institutions favor, innovate, and push mobile banking over web banking? How has your financial institution handled Zelle complaints? What are your concerns?
Check back soon for our next issue, highlighting the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.
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