What I think is surprising about this legislation is apparently Zelle is not required to do the same reporting threshold. https://www.zellepay.com/faq/does-zelle-report-how-much-mone...

So IMO, this set up is almost entirely an anti-fintech play by big banks.

It does seem like there is a way to flag personal verses business transactions as in the FAQ, https://www.irs.gov/payments/form-1099-k-frequently-asked-qu... -- gifts and splitting meals should not be classified as 1099-k income.

I imagine the net impact is more folks will want to get paid via Zelle, to avoid the hassle.

Academically, It would be interesting to know who decided Zelle didn't need to be reported, while Venmo/Paypal did need to start reporting everything.