US Bank saw a major increase in transactions made through Zelle, the bank-based peer-to-peer (P2P) offering operated by Early Warning, in Q3 2017,according toBank Innovation.
ADVERTISEMENT
US Bank sees success with Zelle (USB)
US Bank saw a major increase in transactions made through Zelle, the bank-based peer-to-peer (P2P) offering operated by Early Warning.
US Bank integrated Zelle — which has over 30 other banking partners like Bank of America (BofA), JPMorgan Chase, and Citi — last year. The bank saw a 104% increase in Zelle transactions in the past four months, and a 50% increase in customer enrollment in the P2P offering during that time.
Zelle has leveraged its access to millions of consumers through its banking partnerships to grow its offerings.
- Zelle immediately attracted a massive user base upon launching.
- US Bank’s success with Zelle is another indicator that Zelle is actively challenging its competitors.
- forecasts
ADVERTISEMENT
Peer-to-peer payments, defined as informal payments made from one person to another, have long been a prominent feature of the payments industry. That’s because individuals transfer funds to each other on a regular basis, whether it's to make a recurring payment, reimburse a friend, or split a dinner bill.
Over the next few years, though overall P2P spend will remain constant, a shift to mobile payments across the board and increased spending power from the digital-savvy younger generation will cause the mobile P2P industry to skyrocket.
That poses a problem for firms providing these services, though. Historically, most of these players have taken on mobile P2P at a loss because it’s a low-friction way to onboard users and won’t catch on unless it’s free, or largely free, to consumers. But as it becomes more popular and starts to eat into these firms’ traditional streams of revenue, finding ways to monetize is increasingly important.
Jaime Toplin, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile P2P payments that:
ADVERTISEMENT
You can also purchase and download the full report from our research store.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
ADVERTISEMENT