Digital payments network Zelle has been in a lot of hot water lately over alleged fraudulent transactions and the blame game. While there’s no resolution, one thing is clear: the 5-year-old peer-to-peer (P2P) payments player is operating in the big leagues.
Despite being a relative newcomer to the P2P payments space, consumers and businesses have sent over five billion transactions over Zelle totaling close to $1.5 trillion since the firm launched in 2017, according to a press release on Thursday (Sept. 8).
More than 99.9% of payments are sent without any report of fraud or scams, Zelle said, and nearly 1,700 banks and credit unions use Zelle, including minority deposit institutions (MDIs).
Overall payments sent through Zelle in the second quarter of this year totaled $155 billion on 554 million transactions. Year-over-year payment values went up by 29%, while payment volume increased by 27%, according to the release.
Headquartered in Scottsdale, Arizona, Zelle was founded and is owned by Early Warning Services, LLC, a private financial services company owned by Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank and Wells Fargo.
“Zelle has transformed the way more than a hundred million people move money and conduct digital transactions. We are part of consumers’ everyday lives and committed to being their trusted source for digital payments that are easy to use and don’t require the sharing of any bank account information,” said Early Warning CEO Al Ko.
“Thanks to our financial institution participants, reseller partners, and employees, we continue to innovate and expand adoption while enhancing protection measures,” Ko added.
Zelle and its participating financial institutions are continuously monitoring and updating security measures to protect consumers and keep transactions safe, per the release. Real-time safety notifications alert consumers about fraud activity to watch for and remind them of best practices. The company recently launched the Zelle Learning Hub to help users make smart financial decisions.