It certainly seems that person-to-person transactions are booming, but with PayPal’s Venmo the only market product that openly reports numbers, it’s a little difficult to get an understanding or the current market. Digital Transactions reported that Chase Bank is now openly talking about their success in driving P2P transactions, which helps to bring the market size a little more into focus:
Venmo’s mostly mobile service, which has captured the imagination of a younger crowd with its blend of swift payments and social media, posted $5.6 billion in volume in the last quarter of 2016, a 126% year-over-year growth rate. As recently as the fourth quarter of 2014, the service had not yet reached the $1 billion mark in quarterly volume.
Chase disclosed last week at an investor day presentation that its QuickPay app processed $28 billion last year, up 38% over 2015, on 94 million transactions. While Venmo is undeniably enjoying sizzling growth, its dollar volume in 2016 came to $17.6 billion, less than two-thirds of QuickPay’s total. Chase also revealed that 4 million households are using QuickPay, a 30% increase in one year.
Chase is just one of the many banks and credit unions that are beginning to consolidate their P2P products under the Zelle brand, a P2P solution offered by Early Warning. This will give Zelle clear market dominance.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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