IBM teams up with Zelle for P2P payments

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fintech insurtech wealthtech regtech ai cybertech esg news

P2P payments app Zelle has joined up with IBM to bring the service to more financial institutions.

The payments network from bank-owned Early Warning Services, has also added ACI Worldwide, CGI and D3 Banking Technology to its growing list of technology partners. Launched last year, Zelle connects financial institutions, enabling consumers to send fast person-to-person payments to nearly anyone with a US bank account. It claims to have had an average of 65,000 signups a day during the third quarter, resulting in 60 million payments worth more-than $17bn.

Ian Macallister, vice president of market strategy at Early Warning Services, said: “Our new technology partners empower financial institutions to deploy real-time payments quickly with Zelle – accelerating time-to-market, reducing risk, growing revenues, and controlling costs. We’re at the forefront of an industry-wide move to faster money movement, and our partner ecosystem expansion adds solutions, services, and expertise which will only accelerate Zelle adoption.”

Through its partnership with Zelle, IBM said it has launched an industry first solution to support the full lifecycle of peer-to-peer (P2P) transactions, from the back office to the mobile device, with the deal.

Alistair Rennie, GM, Watson Financial Services Products, IBM, said:” The integration of FTM (Financial Transaction Manager) with Zelle not only accelerates and simplifies payments through real-time processing between banks and consumers, it enables same-day deposits and bill pay, removes fees, and offers seamless cash flow, all while remaining compliant with regulatory requirements.”

The solution ‘removes the friction typically experienced with other providers’ according to Rennie. Earlier this month, IBM announced a new blockchain banking solution to help financial institutions address the processes of universal cross-border payments.

It has also teamed up with Toronto-based FinTech company Dream Payments to bring new revenue generating mobile payment offerings to financial institutions and merchants in the United States via the IBM Cloud.

Global PayTech investment declined in Q2 2017 according to data by FinTech Global. According to the data, $4.8bn was invested into the PayTech subsectors of FinTech in Q2 2016 – a record quarter for investment in the sector.

In terms of deal activity, Q2 2017’s 30 deal count was a slight improvement on the opening quarter of the year, which received 28 deals. It was still some way off the 46-deal haul seen in the same quarter of last year, the 16-deal reduction represents a 34.8% fall in deal activity YoY.

Copyright © 2017 FinTech Global


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