Saturday, August 29th, 2020
Peer to peer transaction processing platforms such as Zelle serve as a bridge that connects consumers and allow them to make and receive payments.
However, lately, businesses are increasingly adopting these services, even threatening to beat consumer usage.
So far, up to seven leading financial institutions are helping home-service firms, and small enterprises collect payments through Zelle’s platform.
According to Early Warning Services LLC, the firm that handles the payment network, Zelle has processed to the tune of 130 billion USD in 2020’s first-half. This figure exceeds the company’s 2019 H1 results by 519 million, and marks a 63 percent jump.
After the onset of COVID-19, various restrictions were enforced to help reduce infection rates. The stay-indoors directives are believed to have increased electronic transactions.
Early Warning Services stated that the emergence of COVID-19 has resulted in a 17% yearly increase in consumer enrollment to the payment service. The firm also noticed a 43% jump in the number of active users. Active users refer to members who undertake a minimum of one transaction within 90 days.
It also noted a 10% growth in the number of payments in 2020’s H1 as more and more consumers switched to contactless forms of payment, such as Zelle.
Users can join Zelle by downloading the mobile app. “Such a service provides contactless payment that is widely embraced by consumers amid a pandemic and enables the safe transfer of funds,” said Lou Anne, a senior executive at Early Warning.
The Bank of America, Morgan Stanley, Frost Bank Chase, U.S bank, Firstbank, and Citi are the seven financial institutions that currently support Zelle’s SME offering.
Early Warning stated that businesses are using the platform for payroll as well as payments. For instance, a brand in Jacksonville that goes by Wounded Warrior Project leveraged Zelle to complete the disbursement of millions of dollars to wounded and sick war veterans who suffered could no longer receive their earnings. The project has been assisting war veterans since 2001.
Several Zelle users also leverage the platform to share federal stimulus funds with dependents, family members, and friends. Up to now, more than 900 financial firms have entered agreements with Zelle’s service, and most are already processing payments.
According to Early Warning, stated that an estimated 7000 enterprises are already part of its service, and users can access the platform with their mobile banking app or Zelle’s official mobile app.