There may have been some version of Zmodem available in 1986, but as Wikipedia itself says, it didn't become widely supported until at least the early 1990s. For example, it wasn't built into ProComm Plus, one of the leading terminal programs, until 1991 [0]. If you didn't have native support, you could add it to your terminal software as an external binary, but that was a bit trickier. [1] And, of course, the BBS you were calling had to support it too.
But when it was available, it sure left Xmodem in the dust!
0: https://books.google.com/books?id=aAtUrtU87kQC&pg=PT180&lpg=...
1: https://github.com/fredrikhederstierna/fymodem/blob/98af4588...
P.S. Old schoolers will recognize the infamous Rusty n Edie's BBS in the directory screenshot in the linked PC Magazine article...