July 19, 2018
During a call with media and analysts discussing its second-quarter financial results, Bank of America provided some insight on the growth of the Zelle mobile P2P payments platform. Zelle is the attempt by the nation’s largest banks to capture some of the adoption of individuals paying each other using their smartphones. Until last year, PayPal’s Venmo was the 800-lb. gorilla in the the P2P mobile payments space. But, big banks in the U.S. felt that by integrating P2P payments into their familiar online banking platforms they could offer them to a much larger audience than those using Venmo. The Zelle standalone mobile app launched in September, 2017.
Bank of America officials said its customers performed 35 million Zelle transactions during Q2 2018 totaling around $10 billion in value—up 143 percent and 118 percent respectively from the same time a year earlier. While more than 30 midsize-to-large U.S. banks enable P2P payments through the Zelle network, Bank of America CEO Brian Moynihan said its customers are one of the largest set of adopters.
“We believe we account for about 25 percent of Zelle and this activity will continue to grow as the industry continues to drive this as our standard for P2P payments,” Moynihan said. “Overall, consumer digital payments have now overtaken non-digital payments, more than $368 billion in digital payments.”