Zelle, the payments network owned by banks Early Warning Services, announced that its volume reached $1 trillion last year. This is the largest ever peer-to-peer platform.
By 2024, the company expects to have 151,000,000 users. The company also stated that money sent via the platform has increased by 27% in comparison to the previous year.
Denise Leonhard stated that last year’s payment volume was “by far the most money transferred ever by a P2P service in one year”.
Launched in 2017 to compete with fintech platforms like Venmo, PayPal, and CashApp, Zelle offers several key advantages. Owned by seven major U.S. banks, including JPMorgan Chase, Bank of America, and Wells Fargo, Zelle enables instant money transfers directly within the apps of thousands of member institutions.
PayPal announced that the total volume of payments made between P2P users exceeded $400 billion.
Allegations that the network and three of the largest U.S. banks on it failed to investigate complaints of fraud properly or reimburse victims have led to the rapid growth of Zelle. Despite the company’s efforts to reduce fraud, they claim that 99.99% percent of transactions are free of fraud.
According to Leonhard, the growth in Zelle is due to bank customers who use it instead of cash or checks for payment. Small businesses are also a major contributor.
“People are using Zelle to do things like paying their rent or their nanny,” Leonhard said. “We want to continue to be top of mind for those consumers to be able to use this every day,” Leonhard added.