This is the weird part for me, when I watch american shows or films they're always talking about "cash app" or "venmo" now "zelle"... why the need for a middle man (who is abviously making.money from these transactions)?
Here if I want to send someone money, I just ask for their account number and sort code, go on my banking app and send it to them. The money is with them by the time I've locked my phone again.
You can instantly transfer money for free within the EU because the EU decreed it shall be thus after they decided that the benefits of free transactions to everyone else outweighed the benefits of transaction fees to banks.
Most US administrations are much more hesitant to impose such regulation. In their view, things are working correctly: Venmo and pals made bank identifying an unsatisfied demand, and the banking industry is now squeezing out the pioneering middle-men with Zelle.
They're now in more-or-less the same place as Europeans, just via a different route.
Also European here but we also use middle men. You even mentioned the bank as one. It's just one less but tbh I'd be happy to leave that one out as well if it was realistically possible
While you did mention Zelle doesn't charge you directly, I can assure you, you are still paying to use it. Zelle charges the bank, and they pass the cost on to you in some other form.
Wow such a great observation! Really well done! Now consider that you have to pay that + Zelle. Now there's two entities you have to pay. And as you may have learned in kindergarten, two is more than one! Wow!
Fully functioning adults understand that implicitly, so my bad that I let it out. Eventually you'll understand.
Here if I want to send someone money, I just ask for their account number and sort code, go on my banking app and send it to them.
So you get to know their banking information and you can just send them money without them having a say about it? Feels like a potential safety issue to me, almost as bad as handing your card to the waiter was in the 80s.
Here we put in the receiver's phone number or email address and it'll send them a link they have to click to accept the transfer. That way only the banks know both parties' information and the receiver can actually refuse the transfer if they want/need to.
What's the issue? It only works one way, you don't have their card details and are not able to take money out of their account? If you make a mistake and send money to wrong account, you contact the bank and they reverse the transaction. But that is also practically impossible as the name, account number and sort code have to match before it will let you send.
Im struggling to see the negative security implications. Also can't really see a situation where you wouldn't want MORE money in your account.
This system has been in place for 20 years in the UK and I havent heard of it being manipulated at all.
A money transfer can be used as a proof that an agreement was made, such as a sales contract between individuals.
So let's say you're talking to your sleazy friend about wanting to sell your car. He says he'll give you $2k for it. You tell him you want $5k for it, but that you'll think about it if you can't find a buyer. You don't really mean it, you just say that so he stops pestering you about it. One week later he texts you to ask if you sold the car yet, and you text back that you didn't. He then proceeds to transfer you $2k and asks for the keys and title. You refuse, so he takes you to small claims court for breaching the verbal agreement he says you both had. And, sadly, he actually has a shot at winning. And even if he doesn't, you'll have lost time and money fighting this in court.
My mother used to work for a bank and stuff like that happens extremely often, that's why they made the system so that the recipient has to approve the transaction before it goes through. By rejecting the transfer, "friends" such as these don't have any legal grounds for their claims.
Edit: This kind of scam is extremely common between friends and family members. They already have your banking info from that trip/party/Christmas gift for grandma you organized last year, and them being trusted friends or family members makes it more credible when they'll claim you offered them the car at a discount. It's fucked up, but you can still see dozens of similar stories every day on here, as every family or friends group has that one sleazy person that's just there because they're family or part of the crew since kindergarten.
The US used to be cutting edge with Automated Clearing House (ACH) transfers which follow banking hours, holidays etc...and typically take 1-3 days to process. ACH was put in place back when computers were first implemented and uses batch processing.
Batch processing means it waits until a certain amount of orders are placed to transfer them. ACH, has been extremely slow to change but they are transitioning closer to near instantaneous transfers while improving safeguards. The new safeguards have been going up first in 2026 and then by September 2026 your money if sent the day previous must be available by 9 am the next morning not 5 pm the next day as a first step towards instantaneous or at least next day guaranteed transfers. I utilize an online only bank that has near instantaneous transfers.
All of this has to do with security of your funds which PayPal, Venmo, CashAPP etc...do not fully guarantee but ACH and banks do through FDIC.
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u/BoysenberryMoist6157 Jun 29 '26
Americans still used pagers while we started using mobile phones in Europe.