Some banks want to enable Zelle at big merchants, potentially to prepare for open banking disruption.

Elizabeth Warren (D-MA) and Robert Menendez (D-NJ) sent a letter to Zelle operator Early Warning Services for clarity on how the peer-to-peer (P2P) payments app handles fraud. What’s in the letter? Warren and Menendez noted reports of Zelle fraud cases and asked whether Zelle and the banks that own the service are doing enough to mitigate the problem.

The banks are working on the service through Zelle parent Early Warning Services, which they own. JPMorgan Chase, Bank of America, Wells Fargo, Capital One, U.S. Bank, PNC, and Truist make up the group. DocuSign is the service’s first participating company.

What’s next: Zelle and Venmo are both trying to push this momentum into 2022. Al Ko, CEO of Zelle’s operator, Early Warning, said the “overwhelming majority” of Zelle’s payments are P2P, but more businesses are starting to use the service: Zelle payments received by small businesses increased 162% YoY in 2021.

FIs can use the NOW Gateway to offer RTP services for Zelle peer-to-peer (P2P) payments, gig worker payouts, and bill payments, among other transactions. The tie-up simplifies the onboarding process so FIs can more easily integrate TCH’s RTP Network, which should help boost interest in the offering and grow RTP volume.

A diverse ecosystem means each bank has its own rules governing Zelle transfers. This could hinder development, slow implementation, and limit uptake of emerging features by complicating rollout, since not all banks will offer the same Zelle services. Zelle will continue to expand user numbers and transaction share but could be constrained by its limited ecosystem.

It doesn’t cover sending money to others via wiring or Zelle. The bank can drop the service or suspend customers’ usage. Overdraft repayment is at the company’s discretion. The bigger picture: CoverDraft and axing of long check delays are part of Ally’s broader push to give customers liquidity alternatives to overdraft fees:.

They can also integrate AP/AR solutions with real-time payment (RTP) networks and digital wallets like Venmo, Zelle, and PayPal, said Jed Rice, CEO of Aliaswire. Offering this range of payment options ensures both suppliers and buyers can use the payment method that works best for them to reduce costs and make the automation process more seamless. Ensure Seamless Integration with Other Systems.

eMarketer junior forecasting analyst Brian Lau shares our estimates for peer-to-peer mobile transactions and usage in the US, as well as why apps like Venmo and Zelle are strong market players.

It’s rare for FIs to support real-time mobile transfers to an external bank, except through Zelle. But the feature is essential for a competitive offering. Chase dominated the category with an unmatched slate of features. It was the only FI to let customers make real-time transfers to external accounts.

P2P’s steady ascent from 82.5 million users in 2020 to 101.8 million in 2024 will be supported by millennial demand—and Zelle will be a beneficiary. Insider Intelligence projects that in 2024, 48.6% of those P2P users will use Zelle, up from 46.5% today.

Article: Zelle records explosive Q2 growth but faces tight competition from peer-to-peer payments rivals.

Last year alone, Zelle added 457 new financial institutions to its network, including a number of small banks and credit unions through a partnership with Fiserv. As noted in our recent report “The Payments Ecosystem,” consumers turn to Zelle for bill paying and larger transactions.

In the US, 37% of adults don’t use mobile payment systems, but among those who do, one has a commanding lead: 39% of US adults use PayPal, while only 15% use rival Venmo and even fewer (12%) use Zelle. More like this:. Article: PayPal achieves record volume in Q1 and reveals plans for super app. Article: Zelle’s small-business transaction volume surged 180% in Q1, aiding overall business growth.

To capitalize on the feature’s demand and drive engagement, banks should pinpoint where their UX around integrated P2P offerings like Zelle can be improved; for example, they could streamline navigation to the feature within their apps and websites. Wire transfers are high stakes and often can’t be canceled once made, so many respondents are steering clear.

In the US, Zelle, Venmo, and Cash App have significant user bases that will fuel a nearly $400 billion market in 2020. The apps' ease of use has led to significant adoption in the past five years. But in Canada, consumers have limited choices for sending money via smartphones, and few dedicated apps have emerged as alternatives to what banks offer.

Apps like Venmo, Zelle, and Square Cash have grown in popularity, with volume hitting $393.87 billion on the back of massive user growth in 2020, according to Insider Intelligence estimates.