As Early Warning’s Zelle P2P solution is becoming integrated into more mobile banking apps, volume reports are starting to emerge. Digital Transactions reported on the Bank of America announcement regarding their P2P volumes discussed during their recent earnings report:
Bank of America Corp. reported Friday that it handled $4 billion in Zelle person-to-person payments in the third quarter, up 67% from $2.4 billion a year ago before the Zelle brand went live this past June.
Charlotte, N.C.-based BofA is one of the big-bank founders of the Zelle P2P payments service, which is part of Early Warning Services LLC, a bank-owned security company that acquired Zelle’s predecessor, clearXchange, in January 2016. The banks see Zelle, which has online and mobile versions, as their answer to non-bank rivals, especially PayPal Holdings Inc.’s popular Venmo service.
Chief executive Brian Moynihan told analysts Friday morning on BofA’s third-quarter earnings call that the bank handled $500 million in Zelle volume in just one week during the third quarter, according to the Seeking Alpha financial news service. BofA’s Zelle transactions totaled 13.6 million, up 68% from 8.1 million in 2016’s third quarter, for an average payment of $294.12, slightly below the year-ago average of $296.30.
Bank of America also began to air 30 second TV spots highlighting their P2P product and the benefits of using the app to pay back outstanding debts to friends, but never mentioned the Zelle brand. The link to the announcement regarding the national campaign can be found here.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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