Varo Adds Support for Zelle Payments

The neobank turned fully-fledged and nationally licensed bank Varo is once again expanding its platform. Now, customers will have access to the popular peer-to-peer (P2P) payment service Zelle from within the Varo app. Previously, while customers could use the Varo to Varo feature to send money to friends and could link their own external bank accounts, a universal P2P payment option wasn’t available natively.

To get started using Zelle within Varo, customers will need to verify their email or phone number with Zelle. Additionally, if that mode of communication is already registered to Zelle with another bank, customers will need to select whether or not they’d like to receive payments to Varo instead. Once this is set up, customers can simply tap the Zelle option under the Move Money tab of Varo to Send or Request funds.

In a statement, Varo Bank founder and CEO Colin Walsh declared, “Adding Zelle to our product lineup is our bank charter in action.” He added, “We are excited to welcome millions of Americans to access Varo’s full range of benefits on our modern, secure, digital banking platform that now includes the ability to quickly send and receive money.”

Additionally, the chief product officer for Early Warning Services (Zelle’s network operator) Kash Baghaei noted, “Today, more than 150 million people have access to Zelle directly through their banking app with no additional downloads necessary. Varo Bank customers will now have a way to send money to friends, family and others they trust, whether they need to pay back a friend for dinner, split the cost of rent with a roommate, or pitch in for a group gift.”

The addition of Zelle is the latest update to come from Varo since the bank obtained its national charter in 2020. Earlier this year, the company expanded its Perks program to bring debit card customers more cashback offers. Last year, Varo also launched its credit-building Believe product, which combines features of a debit card and a secured credit card. Varo has also continued to raise venture capital, most recently closing a $510 million round last fall.

On the one hand, the addition of Zelle to Varo’s app doesn’t seem as though it would be a big development given the ubiquity of third-party P2P apps such as PayPal, Venmo, and Cash App. However, anecdotally, the feature is an oft-requested one, as seen in online forums. Plus, the new addition does help Varo to further stand out from its FinTech brethren. Therefore, expect Zelle’s presence to further fuel Varo’s growth as it continues to seek neobank ascendency.

Leave a Reply

Your email address will not be published.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

AllWork Raises $4.9 Million From FINTOP Capital 

A FinTech focused on freelancer payroll has closed a significant early-round investment. This week, AllWork announced that it had raised a $4.8 million round. The Series A was led by Nashville-based FINTOP Capital with no other participants. As a result of the transaction, FINTOP's Chris Haley and Rick Holton will join AllWork's board of directors. Previously, AllWork closed a $3.8 million seed round in 2019, bringing their to-date funding total to $8.7...

Top 10 Personal Finance Articles of the Month — November 2022 

It’s time again for one of my favorite features here on Dyer News: a look at the top 10 personal finance articles of the month. Up first, we'll look at money in modern times and how inflation is impacting investments. Then, we'll look at some financial considerations. And finally we'll talk about simple pleasures, donating points and miles, and more. As usual, this month’s list includes a couple of Dyer...

U.S. Economy Added 263,000 Jobs in November 2022

Over the past several months, the United States economy has repeatedly offered mixed signals. Although gross domestic product results would suggest we're headed for a recession, the Federal Reserve has been forced to hike interest rates in a bid to slow inflation. Now, the latest figures also show that the economy continues to create jobs at a decent clip. According to the latest Bureau of Labor Statistics report, the U.S....