Member Exclusive

Zelle usage grows, propelled by consumers and small businesses

  • The pandemic acts as a tailwind for digital payments.
  • Zelle, the P2P payment network owned by incumbent banks, is seeing growth in most metrics.
close

Email a Friend

Zelle usage grows, propelled by consumers and small businesses

The pandemic is proving to be a tailwind for digital payments.

Early Warning Services, the network operator behind Zelle, announced $133 billion was sent through the Zelle Network on 519 million
transactions during the first six months of 2020.

“Zelle has become an everyday essential service for consumers who need to send and receive money fast,” said Lou Anne Alexander, Chief Product Officer at Early Warning. “Consumers across all generations have embraced Zelle during these challenging times as a contact-free way to safely exchange funds.”

The numbers

  • Physical distancing requirements continue to drive adoption of Zelle. Enrollment grew 17% over the prior year.
  • Active sender usage, which refers to the people who have sent a payment in the past 90 days, increased 43% year-over-year.
  • Average transactions sent per user increased 10% year-over-year
  • Network-wide payment transaction values increased by 60% year-over-year, while payment transaction volume increased by 63%.

924 financial institutions are connected to the Zelle Network, with
more than half online today and processing transactions.

SPONSORED

Small businesses getting on Zelle

Zelle is making a push into getting small businesses to use it for payments.

Currently, seven financial institutions -- Bank of America, Chase, Citi, Frost Bank, FirstBank, Morgan Stanley, and U.S. Bank -- make Zelle available to their small business clients. Property owners and service providers accept Zelle from their customers. Businesses also use Zelle to make disbursements and pay employees and contractors.

0 comments on “Zelle usage grows, propelled by consumers and small businesses”

Blockchain and Crypto, Member Exclusive

Bankchain Briefing: Banks onboard the blockchain train

  • The lawsuits and insults season is in full swing within the unregulated cryptocurrency space.
  • But cryptocurrency is just one facet of blockchain technology. Tearsheet asked experts for commentary on how traditional banks are experimenting with blockchains.
Lindi Miti | January 27, 2023
Green Finance, Member Exclusive

Green Finance Briefing: VCs are betting on climate tech amid a broader down market

  • Climate tech is accelerating at unprecedented pace, in contrast to the broader tech sector, with global VC funding reaching $70 billion in 2022.
  • This year, however, the growth rate of the climate tech sector is expected to moderate due to a challenging economic backdrop.
Iulia Ciutina | January 20, 2023
Member Exclusive, Payments

Payments Briefing: On Gen Z’s changing relationship with digital payments

  • This week, we talk about Gen Z’s changing preferences when it comes to sending and receiving money digitally.
  • We also discuss PayPal’s evolving BNPL strategy in a crowded market.
Ismail Umar | January 19, 2023
Lending, Member Exclusive

Lending Briefing: There is a recession coming but don’t worry, it’s not 2008 all over again

  • The oncoming recessions is one of the most anticipated downturns in recent history.
  • But things are not the same as 2008, here's why.
Rabab Ahsan | January 18, 2023
Banking, Member Exclusive

Banking Briefing: All aboard the transparency train

  • This week, we take a look into creating transparency within digital-first FIs.
  • We also discuss how banks seem to be overlooking the basics in their offerings, like loyalty programs or advice on investments.
Rivka Abramson | January 16, 2023
More Articles