Digital Payment Platforms Primed to Topple Cash
According to the recent
“The incredible consumer response to digital and mobile banking solutions is changing the entire industry and diminishing the historic use of cash,” he said. “ATM withdrawals and branch visits are slowly declining, while mobile transactions are increasing dramatically year over year. In just the 30-day period since Zelle launched within the U.S. Bank Mobile App, the number of P2P payments sent by our customers have increased by more than 300 percent. It shows that the broad availability of free, easy-to-use and fast-acting technology is supplanting the need for cash.”
Carrying Less Cash
When they do carry cash, nearly half of consumers surveyed keep less
Addressing Consumer Concerns
Despite consumer preference for digital payments, only 43 percent of survey respondents reported making a P2P payment prior to the launch of Zelle. When asked about the obstacles to initial or more frequent P2P mobile payment use, consumers surveyed ranked security and fees at the top of their list, followed by immediate access to funds, risk and convenience.
Unlike the mobile payment systems offered by non-bank providers, Zelle,
which is backed by
“On top of secure in-app access, Zelle payments are sent and
received directly between bank accounts and use a registered email
address or mobile number—this avoids the introduction of a third party
and vulnerability of account information,” Gaston explains. “It’s also
important to note that every Zelle payment made by a
In addition, money sent using Zelle is typically reflected in account balances within minutes when both the sender and recipient are registered. Users can send and receive money between consumer accounts at Zelle’s partner banks, which allows accessibility to the majority of the U.S. banking population.
- Forty-eight percent of men surveyed have used P2P apps in the last six months versus 38 percent of women.
- When using cash, consumers participating in the survey prefer to spend it on dining (36 percent), travel/transportation (15 percent), parties (14 percent), and family functions (14 percent).
- When using P2P digital payment networks, consumers surveyed prefer to pay for bills (51 percent), items from another person (40 percent), gifts (35 percent), and concerts (8 percent).
- Seventy-three percent of previous P2P users participating in the survey reported being more likely to use a P2P service if payments are secure and backed by a bank, and 78 percent reported they are more likely to use a P2P service if they can access funds almost immediately.
Brought to you by Early Warning, an innovator in payment and risk management solutions, Zelle makes it easy, fast and safe for money to move. The Zelle Network connects the nation’s leading financial institutions, enabling customers to send faster person-to-person payments to nearly anyone with a U.S. bank account. Funds are available directly to consumer bank accounts, generally within minutes. To learn more about Zelle and its participating financial institutions visit www.zellepay.com.
Zelle and the Zelle related marks and logos are property of
Deposit products offered by
Michael Walsh, 612-303-9122
Vice President of Corporate Communications