ClearXchange vs. Zelle payments

[Bob H.]

I have been receiving payments from some tenants through clearXchange, which is owned by a group of big banks. Now clearXchange is changing its name to Zelle and forcing changes onto customers.

I don't have a full understanding of the changes, but clearXchange will delete many accounts by October 17. Apparently people who send and receive money are being forced to download a phone app and register a new account with Zelle through the app. That requirement, if true, is one of the most disruptive, customer-hostile conversions I've seen from an old system to a new one.

In two calls with customer service reps today, I have been unable to determine why I would ever need to use the app after registering. You'd think the tenants would send the rent and it would show up in my bank account, making the app unnecessary unless I changed my account information. One rep said that, if I removed the app from the phone, my account would be deleted and I no longer could receive payments. Then I asked what the app really would be doing -- pushing ads at me or spying on my in some way -- but no one in customer seemed able or willing to answer that question.

I'd like to hear from other investors who have experience with Zelle. What's the point of the forcing this app onto customers?