Magazine article American Banker

With U.S. Bank, Zelle Takes a Bigger Step into the Corporate World

Magazine article American Banker

With U.S. Bank, Zelle Takes a Bigger Step into the Corporate World

Article excerpt

Byline: Kate Fitzgerald

Since Zelle's earliest days as the clearXchange network, the banks behind the P-to-P platform have promised that it could have a role in the business world.

Bank of America took the first steps back in 2014, and U.S. Bank has begun the next chapter by offering Disbursements via Zelle as a quicker way to handle corporate payments than paper checks or ACH transfers.

For consumers, Zelle's system of using phone numbers and email addresses to identify recipients is clearly easier than using account numbers. But for businesses, it may not be, and this presents a challenge for any bank working to offer Zelle in a corporate setting.

"We're working with corporations to educate them on the importance of keeping their databases current with contact information for customers they may be sending payments to via Zelle," said Sayantan Chakraborty, a senior vice president at U.S. Bank who is head of product for global treasury management.

This problem should go away as consumer awareness of Zelle grows, according to U.S. Bank's research.

"For a whole generation that's very comfortable doing everyday transactions with a mobile device, Zelle will be a good fit for corporate disbursements, too," Chakraborty said.

Insurance payouts and emergency payroll payments are among the top use cases U.S. Bank expects for some of its corporate clients. The bank's Disbursements via Zelle, announced Wednesday, enables corporations to send payments to any payee with a bank account in the U.S., either in real time or the next day. …

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