Banks to launch app to compete with Apple Pay and Venmo

Jan 25, 2023, 5:30 PM


LE - This March 10, 2015, file photo, shows signage outside PayPal's headquarters in San Jose, California. (Photo: Jeff Chiu/Associated Press)

(Photo: Jeff Chiu/Associated Press)

SALT LAKE CITY — What’s in your digital wallet? And do you trust it? Banks are planning an online payment app that would compete with third-party wallets such as  Venmo, PayPal, Apple Pay — but would include financial protections.

Welcome to the show

Robert Spendlove, a Salt Lake County Republican representing District 42 and an economic and public-policy officer at Zions Bank, joins KSL NewsRadio’s Dave Noriega and Debbie Dujanovic to discuss interconnectivity with the  many financial apps.

Dave has a bit of a problem with those various online payment options; they are not integrated.

“If I use Venmo, I should be able to pay you on Apple Pay, right? You shouldn’t have to have a Venmo account and an Apple Pay account, but that’s not how it works right now.”

Spendlove said banks are aiming for an app that their customers can trust for their money transfers.

“I was just talking to someone who’s 25 years old and he had zero cash in his wallet. But he uses Apple Pay and uses Venmo on a daily basis,” Spendlove said. “We’ve got the problem — it’s kind of a Wild West, where we have different systems . . . and there is a real problem with fraud, with identity theft, with financial stuff. So what banks are trying to do is they’re trying to create a system that you can trust.”

App, banks and fees

“So why can’t they all work together?” Dave asked.

Spendlove said integration between competing apps is the ultimate goal. He pointed to the cryptocurrency collapse as an example of an absence of trust.

“We felt we could trust FTX, and then in one week it collapsed, and people lost billions of dollars,” he said. “And so what we’ve got is we’ve got these different competing systems, whether it’s Venmo or Apple or PayPal, but they’re not really part of the regulated banking industry.

“So the reason you can trust your bank is that it has insurance. It has protections; it has government regulation, state and federal regulations protecting your money. . . If you’re storing your money in a bank, you have those protections. So it’s trying to bring that level of protection [to an app],” Spendlove explained.

“And that’s what Zelle would do?” Debbie asked.

“That’s what Zelle would do. And that’s what that regulatory framework would provide to people,” he said.

“If I use Venmo and Dave gives me $50 for the lunch I bought him . . . that’s not going to be FDIC insured?” Debbie asked.

“It’s not. In fact, if you do peer-to-peer money transfers, once you send that money, it’s gone,” Spendlove said. “We’ve seen this kind of explosion of fraud in these peer-to-peer transactions. . . . There is some protection, but not the level that we’re hoping to achieve with bringing this into a more formalized system.”

Bank fees

Dave said one of the reasons he dislikes his bank is all the fees he is charged.

“Part of the reason I like Venmo, for example, is I can store the money, I can share it. There are no fees tied to it . . . What have you heard with this new bank-run program? Would there be a bunch of fees attached to it?” he asked.

“I don’t know the specifics yet, but I would guess that it would be either no or very low fees,” Spendlove said. “There is a cost of providing all of these [services] — so if there’s no cost, you have to wonder, how are they making money?”


Dave & Dujanovic can be heard weekdays from 9 a.m. to noon. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app, as well as Apple Podcasts and Google Play.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

Business + Economy

Pride month merchandise is displayed at a Target store Wednesday, May 24, 2023, in Nashville, Tenn....

Devin Oldroyd

Should Pride clothing be in the kid’s section?

Target has fallen out of favor with many loud voices over its Pride line of clothing. Should Pride clothing be in the kid's section?

2 days ago

State Farm stops home insurance sales in California...

Curt Gresseth

State Farm Insurance pulls out of California because of catastrophes and increasing costs

State Farm Insurance is no longer accepting homeowner insurance applications in California.

2 days ago

Pride month merchandise is displayed at the front of a Target store in Hackensack, N.J., Wednesday,...


Target removes some LGBTQ+ Pride merchandise over threats to employees

Target is the latest company to face backlash over support for the LGBTQ+ community by selling Pride products.

2 days ago

utah state capitol building pictured, unclaimed money in utah has been given back to veterans...

Dan Bammes

Over $700,000 in unclaimed money returned to veterans

Utah State Treasurer Marlo Oaks said his office has been matching veterans in Utah with unclaimed money.

3 days ago

Electric vehicles are close to a tipping point, making up more than 10% of all cars sold globally l...

Emma Keddington, KSL NewsRadio

UDOT grant to boost the availability of EV charging stations

Whitesides says he expects to see an expansion of 20 charging locations along the Wasatch Front and in rural areas in Moab.

3 days ago

State Farm stops home insurance sales in California...

Ramishah Maruf, CNN

State Farm stops home insurance sales in California, citing wildfire risks

State Farm is stopping new home insurance sales in California, citing wildfire risks and skyrocketing construction costs.

4 days ago

Sponsored Articles

close up of rose marvel saliva blooms in purple...

Shannon Cavalero

Drought Tolerant Perennials for Utah

The best drought tolerant plants for Utah can handle high elevations, alkaline soils, excessive exposure to wind, and use of secondary water.

Group of cheerful team members high fiving each other...

Visit Bear Lake

How To Plan a Business Retreat in Bear Lake This Spring

Are you wondering how to plan a business retreat this spring? Read our sample itinerary to plan a team getaway to Bear Lake.

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...

BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.

Skier being towed by a rider on a horse. Skijoring....

Bear Lake Convention and Visitors Bureau

Looking for a New Winter Activity? Try Skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.

Banner with Cervical Cancer Awareness Realistic Ribbon...

Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.

Kid holding a cisco fish at winterfest...

Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.

Banks to launch app to compete with Apple Pay and Venmo