COSTA MESA, Calif.–When it comes to P2P solutions, institutions in the Zelle network earn the highest scores for customer satisfaction, according to newly released research from J.D. Power.
“On the surface, it’s hard to parse the difference between most P2P transfer services,” J.D. Power said in releasing its findings. “They all ultimately provide the same service with largely the same processing time. Zelle, however, no matter which specific bank is providing the end-user experience, tends to perform significantly higher in overall customer satisfaction than other brands. In fact, among the top eight performing brands in the study, seven are part of the Zelle network. They are (in alphabetical order): Bank of America, Capital One, Chase, PNC, Truist, U.S. Bank and Wells Fargo.”
An ’Interesting’ Finding
J.D. Power noted that “interestingly,” the three brands with the highest market share (PayPal, Cash App and Venmo) are all performing at or below the study average.
“That presents an opportunity for improvement in customer satisfaction for these platforms, and a chance for Zelle to expand its market share,” J.D. Power said.
Love the One They’re With
According to J.D. Power, even though customers indicate there is room for improvement in the service they receive, 89% say they prefer the brand that they use most frequently for P2P transfers. Just 8% of P2P users say they “definitely will” or “probably will” switch the brand they use for sending money in the next year, J.D. Power reported.
According to the company, the most common reason customers are looking to switch brands for sending money is:
- To be on the same platform as their friends/family (39%)
- Security concerns (28%)
- Poor customer service (19%).
Most Likely to Defect
J.D. Power said its research found Apple Pay Cash and Cash App customers have the highest intention to defect. “Conversely, less than 5% of Wells Fargo Zelle users indicate they are going to switch brands for sending money,” it added.
The Opportunity Ahead
According to J.D. Power, as “P2P transfer services mature, users will start expecting more in terms of overall customer service. Whether that’s seamlessly integrating into a digital wallet, more convenience for paying at point of sale, or offering an increased level of security, platforms need to find a way to identify where their services can be strengthened, but also effectively communicate those improvements to users.
“That’s evident in customers’ experiences with Zelle. Services in the Zelle network boast impressive customer service totals but lack the market share of other platforms,” J.D. Power said. “For Zelle to capitalize on the experience they’re providing, they’ll need to find a way forward that shows they understand how, when and why the user is transferring money on their platform so that they can convert on those high satisfaction scores into a broader user base.”
About the Report
This Banking and Payments Intelligence Report is based on responses from the J.D. Power 2024 U.S. P2P Transfers Satisfaction Study, which included 5,727 responses and was fielded in January-February 2024.
For more info, go here.
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