Bank of America Corp (BAC)

[FUNMAN]

PayPal and Square take note of fast Zelle uptake

Oct. 13, 2017 9:43 AM ET
Credit: Stephen Alpher, SA News Editor

To review, Zelle is a P2P payment network backed by the big banks, and a competitor to PayPal's (PYPL +0.4%) Venmo and Square's (NYSE:SQ) Square Cash. Bank of America (NYSE:BAC) incorporated Zelle into its mobile app this year.

Speaking on the earnings call, CEO Brian Moynihan says BofA processed $4B of payments on Zelle during Q3, including $500M in a single week. In total, BofA did $4B of person-to-person payments (adding in some other channels) in Q3, up from $2.4B a year ago (see presentation slides, pg. 14).

Bank of America is lower by 0.6% in early action despite topping estimates, as satiated bulls take a breather.


This is another income source that didn't exist for BAC just a few years ago. It's like someone started a brand new business and ramped transactions up to $4 billion from $ZERO in just 6 years.