Digital Payment Service Zelle Looks to Close Loopholes
*By Conor White*
Digital payment service Zelle is expected to grow its user base by 73 percent in 2018, and overtake rival Venmo in the process, according to a new forecast from eMarketer. But the growth has little to do with user preferences or word of mouth ー rather, it's because Zelle is readily available inside the apps of more than 30 U.S. banks.
With such wide availability, though, comes the risk of fraud.
"Any financial product is confronted with these kinds of fraud issues," explained Ravi Loganathan, head of business intelligence at Early Warning Services, the company that created the Zelle app. "On the fraud side, we are well below any industry benchmarks out there."
But according to an April report by the New York Times, Zelle is especially vulnerable thanks to aspects of its design: all someone needs is a phone number or email address, and the user is not always notified when money is transferred into or out of an account.
In an interview Wednesday on Cheddar, Loganathan insisted Early Warning Services is fixing the loopholes being exploited by hackers.
"What we are doing is working actively with the financial institutions to strengthen and to do the education and training that is needed for consumers to better understand how to use the service and then how to also detect fraudsters."
The improvements come at a crucial time. According to a new study from Zelle, 75 percent of millennials have used a digital peer-to-peer payment service at least once, and 49 percent use one weekly.
For the full segment, [click here.](https://cheddar.com/videos/zelle-examines-consumer-payment-tech-and-behavior)
Wyatt Ewing, Founder and CEO of Ice Barrel, joins 'Cheddar Innovates' to discuss the physical and mental health benefits to cold therapy training, and the innovation behind the Ice Barrel model.
On this episode of Cheddar Innovates: Ice Barrel CEO breaks down the physical and mental health benefits to cold therapy training; Dishcraft CEO explains how its robotics is transforming the role of a dishwasher in restaurant kitchens; A look at Curiosity Stream's original series 'The Year That Rocked The World.'
Apple is reversing course on its in-house repair policy amid the ongoing pressure from right-to-repair advocates and will roll out a self-service option allowing customers to repair and replace some parts on some iPhones themselves.
President Biden's infrastructure plan will be pumping billions of dollars into the EV sector. David Shepardson, Correspondent at Thomson Reuters, joined Cheddar News' Closing Bell to break down all of the details.
Luke Oliver, Managing Director and Head of Strategy at KraneShares, joined Wake Up With Cheddar to talk about why it's the right time to invest in clean energy, as the U.S. continues its transition away from carbon-emitting fossil fuels.
Al Root, Senior Writer at Barron's, joined Wake Up With Cheddar's Jill Wagner to break down who qualifies for the proposed EV tax credits and why some automakers aren't too pleased about extra incentives for vehicles made at union plants.
Jill Wagner is joined by Baker to talk about kids and vaccines: we finally know how many young kids are getting vaccinated. Plus, Democrats are working on a Plan B for paid family leave. And the salad chain Sweetgreen goes public.
