Zelle, the well-known peer-to-peer money transfer service, recently discontinued its standalone app, but don’t worry—the service isn’t going anywhere. Most of Zelle’s 151 million users access it through their banks’ own apps or websites, which means they won’t miss a beat.
The decision to shut down the app follows Zelle’s announcement that only 2% of users were using the app directly. Instead, a large majority have preferred using Zelle through their banks. Users who relied on the Zelle app have been informed via emails and notifications about this change and will now need to sign up through their bank’s app to continue using the service.
Zelle has been around since 2017, created by 30 banks to compete with payment apps like Venmo and Cash App. The app was initially a way for those without bank partnerships to send money, but its popularity has exploded. Today, more than 2,200 banks and credit unions are part of the Zelle network.
In 2024, Zelle reached a milestone, processing over $1 trillion in transactions—which is the highest amount for any peer-to-peer payment service in a single year. This growth highlights Zelle’s essential role in helping people send and receive money easily and safely directly from their bank accounts.
However, not everything has been smooth sailing for Zelle. Last year, former President Biden’s Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Zelle, JPMorgan Chase, Bank of America, and Wells Fargo. The CFPB accused these banks of allowing fraud to thrive on the platform. They claimed that customers had lost over $870 million since Zelle started, but Zelle responded by calling the complaint “meritless.”
Interestingly, the lawsuit was dropped earlier this year during transitions at the CFPB. This situation reflects a broader concern about consumer protection in digital transactions. Fraud has become a significant issue in the digital payment landscape, and the rise of services like Zelle brings both convenience and challenges.
While Zelle has proven to be a reliable option for many users, it also opens the door to potential risks, encouraging users to approach digital transactions with caution.
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