The FinTech Chemist: Making Money Moves With Zelle

Studying the properties and composition that make up the FinTech ecosystem

Welcome to this week’s industry analysis with the FinTech Chemist. The FinTech industry is all about speed and ease, which is why Zelle has become so popular – they have clearly mastered the art of both. Early Warning Services, LLC, the network operator behind Zelle, must have been using the formula to solve for speed: s = d/t. Funds are available directly in bank accounts generally within minutes when the recipient is already enrolled with Zelle. When it comes to ease, users can access the app within their mobile banking app, or download the app directly – both easy options.

Last week, Zelle announced that $49 billion was sent through the Zelle Network through 196 million transactions during Q3 2019. The year-over-year payment values have increased by 58%, while transaction volume has increased by 73%. Talk about making money moves!

According to a recent press release, "Today, one in two adults with a US bank account have access to Zelle in their mobile banking app," said Lou Anne Alexander, Group President, Payments Solutions at Early Warning. "Consumers are turning to Zelle through their financial institution's bank app, as a convenient way to pay each other without needing to download another app. By connecting financial institutions of all sizes, we have enabled consumers to send fast payments to friends and family. Thanks to our partners, we are changing the way money moves today and influencing how it moves in the future."

Zelle is continuing to pick up speed, as Discover Bank just dropped the news that its checking, savings, or money market customers can now use Zelle P2P payments through its mobile app and online center. One of the most beneficial aspects of Zelle is that the only personal information required is an email address or mobile number. As consumers continue to demand seamless, full-service digital banking experiences, banks are scrambling to meet their needs. In addition to providing a quick way to send and receive money with Zelle, the Discover mobile app also allows customers to temporarily freeze their debit cards if misplaced, deposit a check from their phone, pay bills, and find the nearest no-fee ATM within Discover’s nationwide network of 60,000 ATMs.

Now, onto my next scientific… I mean FinTech hypothesis adventure. And, as always, remember to take your vitamins!

Read the previous edition of The FinTech Chemist.