There is a brewing war in the p2p payments space with Venmo and Zelle battling over who is the leader;...
Zelle is hoping to grow their B to C payments by more than 10 percent in 2018; the company already...
Banks are beginning to see that marketing Zelle within their own apps can be a challenge; “It’s not a simple feature you can roll out and say ‘try it.’ Explaining all these things means you have to prioritize because there just isn’t enough time so you have to be very selective,” says Mark Schwanhausser, director of the digital banking practice at Javelin and author of a new report looking at this issue, to TearSheet; banks have tried a number of ways to highlight Zelle as part of their banking experience, though the task has not been easy; as the brand grows and customers get accustomed to the difference the job will become easier. Source.
According to new data from the Federal Reserve mobile payments have seen a big growth among consumers but fraud has also risen; the shorter clearing period looks to have opened banks on the Zelle network to more potential for fraudulent transactions; Zelle has been using multi-layer and multi-factor authentication during the enrollment process; as banks look to innovate to suit their customer needs they are also looking at newer ways to protect themselves against threats that are evolving just as quick. Source.
Zelle has quickly made a name for themselves in p2p payments, now BNY Mellon is looking to leverage the company for business payments; "There are rapid changes in the payments space," Carl Slabicki, director and product line manager for immediate payments at BNY Mellon, said to American Banker. "If you want to remain relevant and allow your clients access to new payment systems, you need to be quicker to market with a faster payment solution.”; b2b payments have no been easier to automate but BNY is hoping to help move the process in that direction. Source.
P2P payments app Zelle saw a 60 percent jump in volume during the 4th quarter, 40 percent of which came...
Zelle is seeing thousands of signups each day and last year saw $75bn in payments, but fraud has become a bigger problem for the company; fraudsters have used some weaknesses like inconsistent notifications when money is sent or received and the speed of transactions because the full posting happens later; they have also seen spoof emails or texts which trick customers into authorizing transactions to a fraudster, Zelle and the banks say they are working on improving the issues. Source.
Customers using Zelle within their banking app have fallen prey to a scam where they send money for tickets but never receive the ticket; since the transaction is instantly done the scammer then closes their account and by the time the bank fully settles the payment the money is gone; banks in the Zelle network, and Zelle itself, have said do not send money to anyone unless you know and trust them; when money is lost customers are asking who should be responsible for replace the funds, should the bank refund them or Zelle; the relationship between the banks and Zelle is not entirely clear from the user perspective, with more frauds occurring customers are starting to ask more questions. Source.
According to TechCrunch, scammers are using Zelle to take advantage of customers; a seller of a product who is attempting to defraud customers will ask a customer to pay using Zelle instead of PayPal; many users are not aware that Zelle does not provide some of the same buyer protections that PayPal has been known for; Zelle is more similar to Venmo for transferring money to those you trust. Source
Chase is starting a new marketing campaign by using GIFs across social media channels in an effort to get millennials to use their QuickPay product by Zelle; the campaign shows a shift by the bank to make campaigns more personalized and geared at a younger target market; Donna Vieira, chief marketing officer for Chase’s consumer bank tells TearSheet, “The channels, mediums and media you use; the copy and creative form like memes and GIFs. Clearly 15 years ago this would be nonexistent, but it’s how this audience communicates with each other, tells their stories and what they find engaging.”; Chase saw a 50 percent increase in p2p transactions in 2017 and a 15 percent increase in new enrollments for their app. Source.