Zelle Processes $25B in Payments After Reports of Fraud


P2P payment provider Zelle processed $25 billion in payments during the first quarter of 2018, the service reported yesterday, a more than 15% increase from last quarter.

While this seems to be a good deal higher than the payment volume of its competitor service, Venmo (owned by payments company, PayPal), these statistics come after several allegations of fraud and security issues were reported for the platform.

These allegations state that some consumers are having difficulties receiving their money from the platform, and that some are experiencing bank hacks that can occur regardless of whether or not that consumer has signed up for Zelle, as reported by the New York Times.

PwC initially noted that one bank was experiencing “a 90% fraud rate” with Zelle, though that statement has since proved unsubstantiated, said the financial service company. There are currently 100 partner banks enrolled in Zelle, as reported by American Banker, 19 of which are presently live.

This $25 billion is spread over 85 million transactions for the quarter, Zelle reported. Zelle did not respond to the allegations of fraud in yesterday’s release.

Read more at Zelle and American Banker.

2 - Readers Like This Post