Zelle payments top $1 trillion in 2024 as network's growth outpaces rivals including PayPal

Published On Feb 12, 2025, 8:01 AM

Zelle has achieved a significant milestone by surpassing $1 trillion in total payment volumes in 2024, making it the largest peer-to-peer payment platform. The network's user base grew by 12%, reaching 151 million accounts, and the total dollar amount sent increased by 27% compared to the previous year. This growth outpaces competitors like PayPal, which reported over $400 billion in payment volume.

Stock Forecasts

JPM

Positive

Zelle's rapid growth and increasing market share suggest a positive outlook for banks that own and operate the service, particularly those involved in digital payments. The potential for further expansion, especially with small businesses and direct consumer applications, is strong.U.S. banks have a strategic advantage due to Zelle's integration within their platforms, reinforcing consumer loyalty and usage.

PYPL

Negative

With Zelle's success posing a competitive threat to PayPal, investors may want to monitor how PayPal responds to this increased competition. If PayPal cannot adapt or innovate quickly, it may see a downturn in its market share.

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