February 27, 2018
Just when it may seem banks have lost the ground in P2P payments to Venmo and PayPal, financial institutions proved to be perfectly capable of scalable innovation. Last October, Zelle processed $1.5 billion worth of payments – up 90% from the same month the previous year. In an even more impressive achievement, the yet half-legged Zelle (fewer than half of Zelle’s 60+ partner banks had launched the service as of late January 2018) moved $75 billion in 2017, which is more than twice the money its popular rival Venmo moved in the same period.
It took Venmo nine years to get to that volume (the service was launched in 2009), but Zelle, an aggressive institutional child, beat all expectations in a fraction of the time.