REX: Consistent Growth for Zelle

FACTS

• The American P2P payment service Zelle releases their results for Q1 2019.

• Over this period, Zelle claims $39 billion sent through their network, and 147 million transactions processed.
• Year-over-year payment values increased by 54%, and payment volume increased by 72%.
• To this day, customers from roughly 5,400 financial institutions have been relying on the Zelle Network, either via their m-banking app, or through storing their payment card to Zelle mobile app.

CHALLENGES

• Becoming a leader on the American market for American payments. Zelle claims higher transaction volumes than their rivals, including Venmo (long-existing service by PayPal), or even Popmoney and Square.
• $119 billion was processed through the Zelle network in 2018 compared to $62 billion via Venmo. And Zelle also took the lead in 2016, highlighting that this interbank service did spread fast.

MARKET PERSPECTIVE

• Zelle is owned by Early Warning, a FinTech company jointly owned by Bank of America, JP Morgan, Wells Fargo, Capital One, US Bank, PNC Bank and Citibank.
• This considered, it is automatically integrated to each of these bank, and enjoys a serious competitive edge, especially when it comes to acquiring and retaining customers.