Modern Marketing

‘Not just for millennials’: How banks are marketing Zelle

  • Banks are emphasizing speed and security in their marketing efforts for peer-to-peer payments service Zelle.
  • Banks contend that their focus on ease and convenience will appeal to a broad spectrum of customers.
close

Email a Friend

‘Not just for millennials’: How banks are marketing Zelle
With Zelle's launch this morning, banks are poised to take a swing at Venmo, Apple and Square Cash with the offer of free instantaneous payments between members of the network. Zelle is a bank-backed peer-to-peer payments network whose functions can be carried out within mobile banking apps of 30 participating banks. For customers whose bank is not part of Zelle, a standalone Zelle app that will launch later this year will let them use Zelle with their bank account. But banks entering the peer-to-peer payments world have to contend with an area that's getting increasingly crowded with strong competitors like PayPal-owned Venmo, which processed $6.8 billion in payments in the first quarter of this year and $17.6 billion in payments last year. Marketing efforts are focusing on the advantages of instantaneous, secure payments without having to leave a customer's mobile banking app. "We conducted research on the critical pieces of peer-to-peer payments, and some of the things that came out on top were speed -- the convenience of going directly from your bank account -- and security," said Melissa Lowry, vice president of marketing and branding at Early Warning Services, a bank-owned company that runs the Zelle network. Lowry said banks are taking the lead on marketing Zelle, which is a rebranding of the banks' clearXchange payments network. Banks that are participating aren't saying much publicly about marketing efforts, but at least one large player contends that the focus on speed and security, rather than a fun social media feed, will appeal to larger customer set. Banks that are part of clearXchange processed $55 billion in payments last year. "Zelle brings person-to-person payments into the mainstream -- it’s not just for millennials," said US Bank spokeswoman Teri Charest. "Zelle will be valuable to customers because it offers speed, convenience and a consistent user experience across banks," noting that the company will be ramping up marketing efforts in the coming weeks.  Participating banks that already have peer-to-peer payments within mobile banking have a head start. JPMorgan Chase's QuickPay, which the bank said processed $28 billion of payments last year, is being branded as "QuickPay with Zelle." QuickPay has a jump on marketing through its own spring advertising campaign called "Battle of the Paddle," which featured sports stars Serena Williams and Stephen Curry dueling in ping pong. "We're going to continue our marketing campaign [for QuickPay] that we've had since the spring -- we're a natural leader in this space," said a JPMorgan Chase spokeswoman. "We've done social media and snackable videos tailored across the spectrum, both from millennials and the average demographic."

0 comments on “‘Not just for millennials’: How banks are marketing Zelle”

The Customer Effect

How are consumer habits and spending changing due to economic turbulence?

  • Economic turbulence is changing consumer spending.
  • 66% of people say that the current economic situation is making them reconsider how much they put aside for their emergency fund, while others are pushing away travel plans and dipping into their 401k.
Rabab Ahsan | April 27, 2023
The Customer Effect

22% of Americans think ‘net worth’ only applies to wealthy people

  • American consumers are more aware of celebrity net worth than their own.
  • Younger consumers, those heading towards retirement, and women are the most likely to not keep track of their net worth.
Rabab Ahsan | April 20, 2023
The Customer Effect

Trouble in paradise: How layoffs are affecting consumer relationships

  • The recent wave of layoffs is impacting consumers’ relationships.
  • 80% of those who were laid off themselves would consider leaving their spouse if they got laid off, too.
Rabab Ahsan | April 14, 2023
The Customer Effect

Quick Take: Scrutinizing the impact of inflation on consumers’ finances

  • Troubles in finance paradise continue. With passing months these anxieties have been growing and are reflected in other parts of customers’ financial habits as well.
  • With rising inflation, how are increasing rents, embedded finance, & layoffs affecting consumers' financial anxieties?
Rabab Ahsan | April 05, 2023
The Customer Effect

The White House is proposing an increase in the capital gains tax. What will non-white groups gain?

  • The White House is proposing a hike in capital gains tax as part of a deficit reduction plan.
  • The taxation system in America needs another look, so far the balance has been tipped in the favor of investors and white households. Will the capital gains tax rebalance the scales?
Rabab Ahsan | March 15, 2023
More Articles