In Zelle We Trust
Bloomberg Businessweek|November 16, 2020
In Venezuela, money transfer services are enabling what may be the world’s first digital dollarization
Andrew Rosati, Alex Vasquez, and Jenny Surane
In Zelle We Trust

When Federico Suárez made an overnight trip to Valencia last month to visit his boyfriend, the 24-year-old Caracasbased lawyer was in the mood to splurge. Over the course of a weekend, the couple enjoyed an empanada breakfast, shopped for imported cheeses and pasta, and then went out for a romantic sushi dinner.

All were purchased using Zelle, the money transfer service owned by a group of seven of the largest U.S. banks. “I can pay for things everywhere. The only problem is, I buy more than I should,” says Suárez.

PayPal and Venmo may have achieved the status of verbs in the U.S., but in Venezuela, it’s Zelle—or “Zell-ey”—that’s on everyone’s lips. Across Caracas, homemade signs that read Aceptamos Zelle (We accept Zelle) dangle in store windows and off produce stands. Computer printouts of the purple company logo are taped to cash registers in supermarkets, some of which have dedicated lines for customers paying with the app. The improvised signage is a hint that Venezuelans’ use of Zelle to provide relief from a rapidly depreciating currency and runaway inflation, while not prohibited, could certainly be described as off-label.

It works for impulse buys, like a candy bar or a new pair of sneakers, as well as for more essential needs. “Without Zelle, we would have fewer patients,” says Dr. Antonio Farfán, a surgeon at a private clinic in Caracas. “I know it’s meant for occasional payments, but here it’s everything.”

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEKView all
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023