Founded 2011 | ||
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Parent organization Early Warning Services, LLC | ||
Kennedy seeks to make clearxchange service ubiquitous
clearXchange, also known as Zelle, is a U.S.-based digital payments network owned by Early Warning that enables U.S. individuals and businesses to electronically transfer money directly from a bank account to another person's bank account using a web interface or mobile device. Unlike when using an Automated Clearing House (ACH) transfer, the payer does not need to know the bank account information of the payee in order to make a payment. Instead, that information is held by the clearXchange service, and the payer only needs to know the email address or phone number of the payee as a way to uniquely identify the recipient. Also unlike an ACH transfer, the service only allows transactions initiated by the payer, not the payee. Once initiated, a payment cannot be canceled. The service's web site says that "Your recipient will generally receive the funds within 5 business days".
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Before it was sold to Early Warning in January 2016, clearXchange was owned by a group of banks consisting of Bank of America, Capital One, JPMorgan Chase, US Bank, and Wells Fargo.
clearXchange was rebranded as "Zelle" in August, 2016, but also continues to operate as clearXchange.
History
clearXchange was formed by Bank of America, Chase, and Wells Fargo in 2011. The service was designed to improve upon banks' existing person-to-person payment services by simplifying the money transfer process. It enables direct account-to-account transfers that avoid the need to first move money into a separate account, such as what is done in the PayPal payment system (and PayPal's Venmo payment service). In 2013, clearXchange named Mike Kennedy Chief Executive Officer and FirstBank as a member. In 2014, it announced Capital One as an owner and member. In 2015, clearXchange announced US Bank as an owner and member.
As of March 2015, clearXchange was the largest bank-focused person-to-person payment network in the U.S.
In October 2015, clearXchange was acquired by Early Warning risk management service.
Service
clearXchange enables users to send money to anyone with a United States bank account. Users access the network within the websites and apps of member financial institutions, and through clearXchange's website. The network connects with existing bank accounts, so consumers do not need to fund a separate account to use the service. Only the recipient's email address or mobile number is needed to send money directly from bank account-to-bank account.
clearXchange offers person-to-person (P2P), business-to-consumer (B2C), and government-to-consumer (G2C) payments. In 2015, clearXchange announced the availability of a real-time payment system.