Zelle Network Banks See Huge P2P Traffic in 2016
It would be safe to think that, save for a couple exceptions, mobile payments systems believe that no one would ever want to pass money from one person to another, rather only from individuals to businesses.
That’s a misconception that seems to be driving some businesses to new heights, as recent word from Zelle Network suggests there’s plenty of gold in the peer-to-peer (P2P) trade.
Current reports note that banks turning to the Zelle Network did some major business in 2016, with a combined total of 170 million P2P payments taken in representing around $55 billion in total business. That’s significant by any standard, and it only gets better; those who use the Zelle Network will be able to take advantage of new offerings coming through 2017, including the “Send Money with Zelle” slate for bank apps.
With Zelle, users can not only send and receive payments, but also split payments using nothing more than a mobile number or an email address as a contact point. So far, Zelle counts 85 million consumers to its user base, with several major banks from Bank of America to Wells Fargo incorporating elements of the Zelle Network into current operations.
It’s true that the network is already handling a spectacular load of transactions, and it’s likely to only continue on this front for the foreseeable future. P2P operations have been oddly neglected by many of the larger-scale providers; though it’s not out of line given that most business has likely run from the consumer to the company, there’s still a substantial amount of bet- and bill-settlers out there. We’ve already seen Venmo run away with a lot of this trade backed up by outrageous emoji, so it’s not particularly surprising to see others decide to try for some of that market.
With the level of success Zelle has already seen, meanwhile, it’s a safe bet that not only will it continue to offer P2P materials, but others will also likely step in as well. P2P might be the big thing in 2017 mobile payments.