#Chase quickpay changes plus

But as it becomes more popular and starts to eat into these firms’ traditional streams of revenue, finding ways to monetize is increasingly important. Historically, most of these players have taken on mobile P2P at a loss because it’s a low-friction way to onboard users and won’t catch on unless it’s free, or largely free, to consumers. That poses a problem for firms providing these services, though. Over the next few years, though overall P2P spend will remain constant, a shift to mobile payments across the board and increased spending power from the digital-savvy younger generation will cause the mobile P2P industry to skyrocket. But as smartphones become a primary computing device, top digital platforms, like Venmo and Google Wallet, have enabled customers to turn away from cash and make those payments digitally with ease. That’s because individuals transfer funds to each other on a regular basis, whether it's to make a recurring payment, reimburse a friend, or split a dinner bill.Ĭash and checks have historically dominated the P2P ecosystem, and they’re still a popular tool. Peer-to-peer (P2P) payments, defined as informal payments made from one person to another, have long been a prominent feature of the payments industry. As Zelle goes live on more providers’ platforms, it will be critical to see if it can pull users from its eligible base, whether that’s in the form of converting existing third-party customers or bringing a new group to P2P payments. That might make banking apps' convenience more appealing than a third-party player. That’s critical, because P2P platforms thrive on network effect, and simplifying interbank transfer broadens that network by bringing more potential users into the fold. Zelle, which launched on Bank of America last week and will ultimately include 19 banks with over 70 million potential customers once it launches in full, is poised to connect bank-based P2P platforms so that it’s easier for users to transfer funds to peers at other banks. If customers are opting to make P2P payments on a third-party service rather than within a banking app, that’s a missed opportunity for mobile banking engagement.īut Zelle, a bank-owned and -affiliated P2P consortium, could be the ticket. That’s because mobile banking is a key engagement tactic for these players, since mobile banking users have considerably lower rates of attrition and tend to consume more banking products on average than other customers. For banks, capturing a share of rising mobile P2P payments matters. That leaves a clear incentive for banks to catch up. In addition, though both Venmo and QuickPay offer both online and mobile transfer options, Venmo is used predominantly on mobile devices only, which means online functionality may not be a substantial volume add for P2P firms.

#Chase quickpay changes plus

Venmo hasn’t disclosed customer totals, but its user base is likely smaller than Chase’s 26.5 million mobile banking users plus its online banking customer pool.

That’s particularly notable considering Venmo’s limited use cases.

But Venmo is growing fast - the platform processed $17.6 billion in 2016, marking a remarkable 135% growth and significantly shrinking the gap between it and QuickPay. In 2015, Venmo’s volume of $7.5 billion was just over a third of QuickPay’s total. QuickPay once dwarfed Venmo’s volume, but that’s no longer the case.But it’s worth paying attention to third-party competitors, like Venmo, which are starting to creep up on QuickPay. In general, that’s strong performance, especially considering that just 25% of US adults have made a mobile P2P payment. To learn more and subscribe, please click here.Īt its investor day, JPMorgan Chase announced that Chase QuickPay, its proprietary peer-to-peer (P2P) payments offering, saw 94 million transactions worth $28 billion in 2016.įor context, that marks a 38% increase from the $21 billion that the firm processed last year. This story was delivered to BI Intelligence ' Payments Briefing' subscribers.