In the wake of the COVID- 19 pandemic and an increased reliance on digital and contactless payment options, person-to-person (P2P) payments technology continues to be more valuable than ever. Members need a safe and secure way to receive or send money, whether it is sending money to friends or family members or sending their share of the rent to a roommate.
In the universe of P2P, Zelle® has become the preferred way for many consumers to easily send and receive money. According to Aite-Novarica, Zelle® has rapidly grown to become the largest U.S. P2P payments network by total payments value sent since its launch in 2017, with payment flows that are now twice the size of the next largest standalone competitor.
Early Warning Services, LLC, the network operator behind Zelle®, reports that consumers and businesses sent 1.8 billion payments through the Zelle Network® during 2021, an increase of 49% from a year earlier. Those payments totaled $490 billion, up 59%1.
To support members with their P2P needs now and in the future, Co-op offers credit unions in the Co-op ecosystem a way to integrate Zelle® into their mobile banking solution. Credit union clients need only have Co-op account-based technology in place (widely supported by thousands of credit unions and all major processors) and the ability to offer Zelle® within their mobile banking solution.
Offering Zelle® at your credit union allows your members to quickly send or receive money directly from one U.S. deposit account to another, typically within minutes*. And because access to Zelle® is offered within your credit union’s online and/mobile experiences, members will appreciate the security and financial peace of mind.
Staying Connected to Members While Driving PFR Status
Staying connected to members and improving their daily lifestyle is key to becoming their primary financial relationship.
“As we learn more about what members expect from their primary financial relationship, it’s becoming clear that lifestyle, not just life stage, is at the heart of member loyalty,” said Co-op Chief Product Officer Bruce Dragt. “More than just a mobile payment solution, Zelle® is a powerful branding and engagement tool that allows credit unions to be there for members during common everyday moments — from splitting the cost of a lunch tab with friends to paying the sitter or paying the rent. The member-facing technology of Zelle® furthers a credit union’s digital maturity while providing a payments experience that is fast, safe, and easy every day.”
A Zelle® Success Story for Credit Unions
Launching in 2020 with just a few beta clients and one digital provider, Co-op has grown its Zelle® offering to include more than 100 credit union partners and integrations with 13 digital providers. To date, nearly $3 billion has been transacted by more than 800,000 credit union members using Zelle® through Co-op, with enrollment and usage continuing to climb at an average of 7% per month. In an ongoing effort to provide solutions that evolve to meet member needs, Co-op plans to rollout support for small businesses in 2023.
“Our differentiator is our integration both in volume of partners and ease of install,” added Dragt. “We have already surpassed the usage volumes for all of last year in just the first six months of 2022. Co-op works with all the major digital providers and integrates with any core processor, making it fast and efficient for credit unions to engage their members by offering Zelle®. ”
One success story from the Co-op network, Las Vegas-based Clark County Credit Union, which serves more than 50,000 first responders, medical workers, and local government employees. The credit union was looking to replace its legacy P2P payment solution, which was not meeting member expectations. Implementing Zelle® through Co-op was the top option to deliver a superior member experience by offering a best-in-class solution and delivering it quickly and efficiently.
“We wanted to be part of that market and offer our members what they had been asking for, which is a fast, safe and easy way to send money. Since we have been live, we’ve seen tremendous growth,” said Zia Ibrahim, Digital Product Manager for Clark County Credit Union.
“The pace of growth is fascinating,” added Matt Becker, Chief Technology Officer for Clark County Credit Union. “In a year, Zelle® has achieved active usage numbers equivalent to those earned by online bill pay – a technology that’s been around for 20 years. Zelle® is a product that in some ways sells itself. Zelle® just works, and it works for the masses. It’s easy, and almost anyone in the U.S. can utilize it.”
Zelle® can be enabled at your credit union through a variety of integration options, including:
- Pre-integration via credit union’s digital solution provider
- Credit union-initiated digital provider integration
- In-house integration for credit unions with a homegrown digital banking solution.
To make implementation of Zelle® easy and efficient for our clients, Co-op has partnered with multiple digital banking solutions to enable pre-integration with 13 digital platforms and continues to work with additional digital banking providers to enable this same level of pre-integration.
1Source: Zelle® press release Nearly Half a Trillion Dollars Sent by Consumers and Businesses with Zelle® in 2021
* U.S. checking or savings account required to use Zelle®. Transactions between enrolled consumers typically occur in minutes.