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Zelle to Overtake Venmo in 2018

Square Cash distant third for P2P apps

June 13, 2018 (New York, NY) – It may be one of the newest services for transferring money to a friend using a smartphone, but Zelle has quickly surpassed the competition to become the most used peer-to-peer (P2P) mobile payment platform in the US. According to eMarketer’s latest US mobile payment forecast, Zelle will overtake Venmo to become the leader in 2018.

Zelle will grow more than 73% this year to reach 27.4 million users* in the US, slightly ahead of Venmo (22.9 million users). Square Cash will round out the top three with 9.5 million users.

“Zelle, a P2P service made up of a network of 30 US banks, has catapulted itself to the top of mobile P2P payments, rivaling more established apps such as Venmo,” said eMarketer forecasting analyst Cindy Liu. “One of the main hurdles new apps face is building trust and a sizable audience. But Zelle has leapfrogged the early stages of adoption by having the benefit of being embedded into the already existing apps of participating banks.”

This year, the total number of P2P mobile payment users in the US will grow nearly 30% to reach 82.5 million people. That equates to 40.5% of US smartphone users.

The total transaction value of mobile P2P payments will grow 37.0% this year to reach $167.08 billion. That figure is expected to surpass $300 billion by 2021.

* ages 18+; mobile phone users who have made at least one peer-to-peer transaction via a mobile phone in the past month.

 

Methodology
eMarketer’s forecasts and estimates are based on an analysis of quantitative and qualitative data from research firms, government agencies, media firms and public companies, plus interviews with top executives at publishers, ad buyers and agencies. Data is weighted based on methodology and soundness. Each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of available data means the forecasts reflect the latest business developments, technology trends and economic changes.

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Founded in 1996, eMarketer is the first place to look for research about marketing in a digital world. eMarketer enables thousands of companies worldwide to understand marketing trends, consumer behavior and get the data needed to succeed in the competitive and fast-changing digital economy.eMarketer’s flagship product, eMarketer PRO, is home to all of eMarketer’s research including; forecasts, analyst reports, aggregated data from 3,000+ sources, interviews with industry leaders, articles, charts and comparative market data. eMarketer’s free daily newsletters span the US, EMEA and APAC and are read by more than 200,000 readers globally. In 2016 eMarketer, Inc. was acquired by European media giant Axel Springer S.E.

 

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Douglas Clark, PR Director

646-863-8807

dclark@emarketer.com

Posted on June 13, 2018.