Zelle's use surges despite some fraud issues
The Zelle person-to-person network moved more than $25 billion in transfers in the first quarter that ended March 31, up 15 percent from the fourth quarter of 2017, according to a press release from Early Warning.
That figure came on 85 million transactions, up 14 percent from the previous quarter.
"Zelle is replacing cash and checks for sending gifts for birthdays to distributing funds to those in need, changing how money moves safely for millions of consumers," Paul Finch, CEO at the bank-owned Early Warning Services, which is the network operator behind Zelle, said in the release. "In partnership with each of our participating financial institutions, we are educating consumers while innovating to deliver safe and secure payments."
However, Zelle's success hasn't been without some controversy.
The New York Times recently published a story about fraud scams that involve Zelle. One of those scams involves Craiglist, where unsuspecting consumers think they are buying tickets from a fraudster, send payment through Zelle, but never receive the tickets.
Zelle has said in the past it is aware of the issue and is being proactive about it.
Topics: Money Transfer / P2P