Zelle set for US mobile banking roll-out
Written by Chris Lemmon
Starting this month, more than 86 million US mobile banking customers will be able to send and receive money through Zelle – a new peer-to-peer (P2P) payments network from bank-owned Early Warning Services.
Zelle allows for funds to be sent from one bank account to another in minutes, using just a recipient’s email address or phone number. Integrated directly into mobile banking apps, Zelle is set to make digital payments in the US a fast and easy alternative to cash and cheques.
In the first quarter of 2017 alone, the Zelle network processed more than 51 million transactions, totalling more than $16 billion. The network has experienced 39 per cent year-on-year growth in transaction volume, processing $55 billion in P2P payments in 2016.
Early Warning has also established partnerships with payment processors CO-OP Financial Services, FIS, Fiserv, and Jack Henry and Associates, to enable millions more to access Zelle through community banks and credit unions.
Paul Finch, chief executive officer of Early Warning Services, said: “Fragmentation has been frustrating for consumers. Inconsistent experiences, have made it difficult to send and receive money between banks.
“Zelle unites the financial community behind a single, real-time P2P payments experience for millions of consumers. Together, we are removing friction from finance, allowing money to move seamlessly between accounts in minutes. This revolution in money movement will create for consumers a viable alternative to checks and cash.”
On a rolling basis over the next 12 months, Zelle will be rolled out to Ally Bank, Bank of America, Bank of Hawaii, Bank of the West, BB&T, BECU, Capital One, Citi, Citizens Bank, Comerica Bank, ConnectOne Bank, Dollar Bank, Fifth Third Bank, FirstBank, First Tech Federal Credit Union, First Tennessee Bank, First National Bank, Frederick County Bank, Frost Bank, HomeStreet Bank, JP Morgan Chase, KeyBank, M&T Bank, MB Financial Bank, Morgan Stanley, PNC Bank, SchoolsFirst Federal Credit Union, Star One Credit Union, SunTrust Bank, TD Bank, USAA, U.S. Bank, and Wells Fargo.