17 October 2017
visit www.response.ncr.com

Zelle P2P network zooms past Venmo

18 April 2017  |  6953 views  |  3 Teenagers using Smartphone

The American bank-backed Zelle network processed 170 million person-to-person payments last year boasting an aggregate transaction volume of $55 billion, more than double that of PayPal-owned rival Venmo.

Run by Early Warning for its owners - Bank of America, JPMorgan, Wells Fargo, Capital One and US Bank - Zelle lets users send funds directly from their bank accounts to the recipients' using only an email address or mobile phone number.

The network now has 20 banks and credit unions onboard, and is poised to reach 85 million people through member apps this year. So far Bank of America, US Bank, and Wells Fargo have already embedded aspects of Zelle within their mobile apps, and more network banks are scheduled to launch in the second quarter.

The transaction figures demonstrate the power of big-bank backing. While Venmo has established itself as the most talked about P2P payments service in the US, its standalone app processed just $17.6 billion last year.

Thong Nguyen, president, retail banking at Bank of America., BofA, says: "With Zelle, we’ll collectively reach more US bank consumers than any other person-to-person payments network and deliver a faster, safer and easier payments experience that will enable our customers to live more convenient financial lives."

Comments: (3)

Marilyn Bochicchio
Marilyn Bochicchio - Hidden Brain - sherborn | 18 April, 2017, 22:13

Having once made a similarly embarrassing error in an article headline, I can sympathize with the author. But that in no way diminishes how amusing your comment is, David. Post-arithmetic, indeed! 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Gerard Hergenroeder
Gerard Hergenroeder - Payments Shark - Millersvile | 20 April, 2017, 00:21

This makes sense to me. Once the U.S. banks put their "will" behind something collectively success comes quickly. In the U.S. I expect Zelle and The Clearing House Faster Payments initiatives to be equally successful, overshaddowing the early Fintech start-ups.



1 thumb up! 1 thumb up! (Log in to thumb up)
Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 20 April, 2017, 20:00


+ 1. Banks may or may not do better digital than fintechs but they surely do more with digital than fintechs.

Ever since my bank launched its mobile wallet, it has become my go-to method of payment, ahead of the fintech mobile wallet I used to use before. HDFC Bank's PayZapp Ends My Bill Payment Woes  

One question: Fintechs use VC funding to offer digital services, even at a huge loss. As traction increases, their paper valuation goes up. VCs exit at handsome profits during the next round of funding. Everyone is happy. Life goes on, seemingly forever. In your experience in payments, will banks use their huge profits to fund similar loss-making digital services forever?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Bank of America first to launch Zelle P2P payments

Bank of America first to launch Zelle P2P payments

23 February 2017  |  12627 views  |  0 comments | 12 tweets | 13 linkedin
Citi joins Early Warning as banks prepare all-out assault on digital rivals

Citi joins Early Warning as banks prepare all-out assault on digital rivals

29 September 2016  |  6730 views  |  0 comments | 13 tweets | 7 linkedin
US banks rebrand P2P payments service to take on Venmo

US banks rebrand P2P payments service to take on Venmo

25 August 2016  |  9976 views  |  1 comments | 10 tweets | 13 linkedin

Related company news


Related company information

JPMorgan Chase

Related blogs

Create a blog about this story (membership required)
visit www.capgemini.comvisit www.vasco.comvisit www.innotribe.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14521 views comments | 11 tweets | 3 linkedin
Taiwan's Far Eastern International Bank suffers malware attackTaiwan's Far Eastern International Bank su...
13110 views comments | 16 tweets | 22 linkedin
Monzo fends off suitors as current account upgrade beginsMonzo fends off suitors as current account...
8992 views comments | 17 tweets | 14 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
7963 views comments | 15 tweets | 20 linkedin
Ripple blockchain network hits 100-member markRipple blockchain network hits 100-member...
7643 views comments | 13 tweets | 13 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job