Zelle transaction volume increased 27% in the first half of the year

Zelle’s person-to-person (P2P) payment network continued to grow in the first half of the year.

The number of transactions sent over the network rose 27% year over year to 1.7 billion, while the value of those transactions rose 28% to $481 billion, Zelle’s network operator, Early Warning Services, said in a statement on Thursday (October 11th). . 17) Press release.

Additionally, Zelle’s number of registered users increased by 17 million, bringing the total number of consumer and small business user accounts to 143 million, according to the press release.

Early Warning CEO Cameron Fowler attributed this growth to the simplicity and security of digital payments enabled by Zelle’s network of 2,200 banks and credit unions.

“Simply put, Zelle meets a vital need for millions of Americans,” Fowler said in the press release. “Consumers and small businesses alike benefit from the reliability, speed and security that Zelle provides when they pay people they know and trust.”

According to a collaboration between PYMNTS Intelligence and The Clearing House, “P2P Payment Potential: Promoting Convenience While Protecting Consumers,” 51 percent of Americans regularly use P2P apps like Zelle and Venmo.

While these services have become ubiquitous due to their ability to facilitate quick and easy money transfers, concerns about fraud cast a shadow over their growth, the report said.

JPMorgan Chase announced in August that the Consumer Financial Protection Bureau (CFPB) had questioned it about money transfers using the Zelle network.

“In this regard, CFPB staff has informed the company that it has the authority to seek resolution of the investigations or initiate an enforcement action,” the bank said in a filing with the Securities and Exchange Commission (SEC). “The company is evaluating next steps, including filing a lawsuit.”

Early Warning said in its press release Thursday that it has used user interface updates, new technologies and consumer education to combat scams and scams on the Zelle platform.

Its efforts include in-app messaging to confirm the name of the intended recipient and remind users to only pay people they know and trust; data-driven insights to help participating financial institutions identify potentially suspicious payments; and campaigns launched in collaboration with the Better Business Bureau Institute for Marketplace Trust and the National Council on Aging to help users identify and avoid potential scams and scams, the release said.