Reports Say P2P Payments Growing Rapidly for Providers

Oct 22, 2018

Peer-to-peer transfers are the hot topic of the financial industry right now. Several reports recently emerged that show just how fast this payment type is growing for both bank and nonbank providers.

According to Early Warning Services, LLC, the bank-owned Zelle network’s provider, 100 million transactions were processed in the three months ended June 30 – a grand total of $28 billion. In their reports, Early Warning said that these amounts represent increases of 17 percent and 11 percent respectively.

And growth is not expected to stop there. Experts are saying that even faster growth is likely. Early Warning also reported that 29 financial institutions are now live on the network, and 119 more are under contract. As of now, banks control 56 percent of U.S. demand-deposit accounts. Zelle has also recruited so-called core processors to support network links for banks, including: Co-Op Financial Services, Fidelity National Information Services Inc. (FIS), Fiserv Inc., and Jack Henry & Associates.

“In a phenomenal year for the banking industry, consumers have embraced Zelle as a fast, safe, and easy way to send money digitally,” said Early Warning chief executive Paul Finch, in a statement.

What Does the Future Look Like?

The results Zelle has seen over those three months have pushed it well ahead of its chief nonbank rival, PayPal Holdings Inc.’s Venmo service. Although, Venmo still continues to rack up impressive results, staying right at Zelle’s heels. PayPal recently revealed that the service posted $14.2 billion in payment volume for the June quarter, up 78% over the same period last year.

Yes, this is far behind Zelle’s volume, but Venmo is not the only P2P play for PayPal. Through its core PayPal service, the provider also offers transfers through Xoom. Xoom is a digital-remittance platform PayPal acquired back in November 2015. When you consider the combined volume of these three services, the total comes to $33.4 billion (in the June quarter).

What does the future look like for the industry? Estimates from New York City-based research eMarketer project that Zelle will reach 27.4 million in active consumers by the end of this year. The estimates for Venmo are 22.9 million by year’s end.

What to do if Traditional Processing Isn’t Available?

While the future looks bright for P2P payments, not every merchant can secure traditional processing. Some business types and industries are turned away for being too “high risk”. The reasons can include: bad credit, high chargeback rates, industry risks, no collateral, limited time in business, etc.

If your business needs processing, alternative providers like offer the perfect solution. As a high-risk specialist, EMB offers a high-risk merchant account that’s tailored to meet your business’ unique needs. The full suite of electronic payment processing solutions ensures your business can easily accept credit cards and checks electronically. You can expect:

  • Fast approvals in 24 – 48 hours.
  • No set up fees for most merchants.
  • High Risk merchants approved.
  • High volume solutions: load balancing gateways and multiple MIDS.
  • Chargeback protection & chargeback prevention programs available.
  • iCheck Check Processing service, featuring quick payments.

Stay up to date with changes in the industry and keep your customers happy by offering great customers service and convenient payment options. The business types and industries EMB provides high risk services to include: gaming, bad credit, nutraceutical, credit repair, telecom, warranty, tech support, travel, ebooks, electronics, airlines and many others.

Secure a proven platform that works for your business, and enjoy new features that are added daily. You also have the support of a team of experts that have been voted the best in the industry. Signing up is fast, easy and secure.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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