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Real-time banking services like Venmo, Zelle, and Google Pay for instant payments and updates. Budgeting tools and AI-powered finance management within their banking apps for seamless financial planning. Access to information like free credit scores in their apps, so they don鈥檛 have to search and potentially pay elsewhere for valuable information.

Since then, the agency has dropped its lawsuit against Zelle and is expected to scrap its open banking rule and its rule to regulate apps like Apple Pay and Google Wallet as banks. Our take: The decision to revoke this rule is a win for the BNPL fintechs, but it leaves the industry back at square one in terms of regulation. While BNPL has grown rapidly in recent years, regulation didn鈥檛 keep pace.

The Consumer Financial Protection Bureau (CFPB) sued Zelle-owner Early Warning Services (EWS) and three of its consortium banks, claiming they failed to protect Zelle users from fraud. The suit may not go anywhere given all CFPB operations have been halted, but it shines a light on Zelle鈥檚 continual fraud (whether overstated or not). Zelle has said that only 0.05% of Zelle transactions are fraudulent.

The agency has since dropped at least half a dozen legal cases started by Chopra, including a lawsuit against Zelle-owner Early Warning Services. And the House Financial Services Committee approved a resolution this week to block the CFPB鈥檚 overdraft fee rule.

Gen Zers favor Venmo, Apple Pay, and Zelle mobile wallets. Venmo鈥檚 social media roots keep its allure strong among younger consumers. And Gen Z鈥檚 preference for iPhones gives Apple Pay a big lead over other in-store wallets, such as Google Pay and Samsung Pay. But Gen Z has also embraced Zelle, as the bank-owned app keeps building a bigger share of peer-to-peer (P2P) transaction value and usage.

Discover has a highly rated app that supports mobile check deposits, Zelle transfers, and full account management. And Capital One and Discover just got the final green light to merge, which could mean this app鈥檚 technology will assist more customers.

The agency has dropped its lawsuit against Zelle and is expected to scrap its BNPL rule. Its rule to regulate apps like Apple Pay and Google Wallet as banks is also being undone by Congress.

The agency dropped its lawsuit against Zelle, Bank of America, JPMorgan, and Wells Fargo. Vought also zeroed out the CFPB鈥檚 funding for the year and tried to fire 80% of the agency鈥檚 employees. But the open banking rule seemed to be on safer ground. It had received endorsements from congressional Republicans: Then-Chairman of the House Financial Services Committee Rep.

The CFPB sued Early Warning Services (EWS) and three of its owner banks in January, claiming they failed to protect consumers from fraud on Zelle. The agency also ordered Block to pay $175 million over what it claims was a failure to protect Cash App customers from fraud. Our take: We knew the CFPB鈥檚 recent rulemaking and other initiatives would be overhauled once Trump.

In addition to trust issues, X Money will have to compete in a highly saturated market where consumers are already loyal to their preferred platforms, like Venmo, Zelle, and Cash App. This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends.

Payment networks like Zelle, Venmo, and Cash App provide real-time payment options to consumers鈥攂ut they do not settle the funds. For example, Zelle typically credits transactions instantly to payees. But the actual settlement of funds occurs instantly only via the RTP network (if the sender鈥檚 and recipient鈥檚 banks both use it). Otherwise, transactions are settled later via ACH.

Our take: This enforcement action offers Block and Cash App closure on the CFPB鈥檚 investigation鈥攗nlike its peer-to-peer (P2P) payment competitor Zelle, which faces a CFPB lawsuit over its own fraud prevention practices.

The big three have succeeded in part by carving out their own niches: Zelle is typically used for higher value payments thanks to its bank backing; Venmo is popular among younger consumers for its cost-splitting; and Cash App markets itself as a bank and is popular among crypto users.

The bigger picture: This is not the first time Zelle has been under fire for its fraud prevention practices. The Securities and Exchange Commission (SEC) looked into JPMorgan鈥檚 Zelle complaint process in February and Wells Fargo鈥檚 in May. And in 2023, Democratic senators asked regulators to strengthen consumer protections against Zelle.

As lawmaker pressure mounts, JPMorgan and other major banks are said to be devising a plan that would reimburse Zelle fraud victims.

Gen Z has also embraced Zelle, as the bank-owned app keeps building a bigger share of peer-to-peer (P2P) transaction value and usage. Gen Z will also propel in-store mobile wallet usage.The number of Gen Z mobile proximity payment users will rise from 32.8 million in 2024 to 50.0 million in 2028, per our forecast鈥攚hich will represent 37.7% of overall users.

They want banking regulators to look into how banks that offer Zelle protect consumers as fraud concerns grow.