Zelle, the P2P payment platform operated by Early Warning announced another partner today, namely Jack Henry:
Today the company announced a strategic alliance with Early Warning to resell Early Warning’s Zelle sm Network to partner financial institutions. Zelle, a new faster payments network, will enable financial institution customers to send faster person-to-person (P2P) payments to nearly anyone with a U.S. bank or credit union account.
Why this is important and not just another partnership announcement is that this further cements Zelle’s position as the financial institution de facto solution as I have written about recently here. Jack Henry joins other processors such as Fiserv and FIS, plus large financial institutions that will market the P2P solution under the Zelle brand.
If all of these providers were fully integrated with Zelle, Zelle would reach a majority of U.S. account holders:
Zelle is an inclusive network that is open to all banks and credit unions in the United States. Nineteen financial institutions have already joined the Zelle Network thus far, and through Early Warning’s alliance with Jack Henry & Associates, approximately 3,000 additional financial institutions will gain access to the network. At launch, Zelle will be one of the largest faster payments networks in the U.S., accessible to over 76 million mobile banking users nationwide.
Ubiquity or near-ubiquity is very important to the success of P2P. With new partners declaring their intentions, Zelle is poised to be the dominant provider.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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