In the first quarter of 2018, more than $25 billion moved through the Zelle Network, up 15% quarter-over-quarter (QoQ), on 85 million transactions, up 14% QoQ.
“Zelle is replacing cash and checks for sending gifts for birthdays to distributing funds to those in need, changing how money moves safely for millions of consumers,” saysPaul Finch, CEO at the bank-owned Early Warning Services – the network operator behind Zelle.
“In partnership with each of our participating financial institutions, we are educating consumers while innovating to deliver safe and secure payments.”
Zelle enables payments from one bank account to another, typically within minutes when both consumers are enrolled, using only an e-mail address or a US mobile phone number. Currently, more than 100 financial institutions have signed contracts to participate in the Zelle Network. For consumers who bank with financial institutions that do not participate in the Zelle Network, a Zelle app is available in the Apple App Store and Google Play.
While this seems to be a good deal higher than the payment volume of its competitor service, Venmo (owned by payments company, PayPal), these statistics come after several allegations of fraud and security issues were reported for the platform.
These allegations state that some consumers are having difficulties receiving their money from the platform, and that some are experiencing bank hacks that can occur regardless of whether or not that consumer has signed up for Zelle, as reported by the New York Times.
PwC initially noted that one bank was experiencing “a 90% fraud rate” with Zelle, though that statement has since proved unsubstantiated, said the financial service company. There are currently 100 partner banks enrolled in Zelle, as reported by American Banker, 19 of which are presently live.
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