Zelle Catches A Growth Wave, Threatening Venmo
The Q2 earnings season has just kicked off, and it’s already helping shedding light on recent developments in the peer-to-peer (P2P) world — most notably, the shape of the ongoing competition between Zelle and Venmo.
The good news about Zelle came earlier this week when Bank of America (BoA) released its second-quarter financials. User data from the financial institution (FI) showed 142 percent year-over-year growth in Zelle P2P transactions to 35.1 million, with a total principle amount of more than $10 billion, which itself was a 100 percent year-over-year increase.
“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,” said BoA CEO Brian Moynihan during a post-earnings conference call Monday (July 16) with investors. In 2017, the bank represents a third of all Zelle transactions.
That Q1 growth rate represents an acceleration from the first quarter’s year-over-year growth rate of 131 percent, and helps to demonstrate that Zelle has started to scale.