Zelle, a digital payments service that allows users in the United States to send and receive money quickly and securely between bank accounts, has announced plans to shut down its standalone app.
According to a company blog post, Zelle announced that it will phase out transactions on its standalone app over the next few months. The company is encouraging users to switch to using Zelle through their financial institution’s mobile app or online banking platform instead.
The company announced that the standalone Zelle app will no longer support new enrollments or transactions, but it will remain accessible for consumer education on scams, and fraud prevention and provide a directory of participating financial institutions.
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Part of the blog post reads,
“With the vast majority of people using Zelle through their online banking app, we are making a change to our Zelle standalone app. The vision for Zelle has always been a solution that allows people to send and receive money to and from those they know and trust directly between bank accounts. Today, the vast majority of people using Zelle to send money use it through their financial institution’s mobile app or online banking experience, and we believe this is the best place for Zelle transactions to occur.??
“When Zelle first launched, we also created a standalone Zelle-branded app for consumers whose banks or credit unions had not yet joined the network. With the strong growth of adoption by banks and credit unions, we now see just ~2% of transactions on the standalone app. As a result of our growth, and because most people are now using Zelle in their financial institution’s mobile app or website, we are making a change to the Zelle standalone app.
“Over the next few months, we will be phasing out the ability to enroll and transact within the standalone app. As we do that, we are encouraging those who use the standalone app to instead start using Zelle through a participating bank or credit union. Users of the app will continue to be able to access it, but the app will be dedicated to consumer education about scams and fraud and provide a list of the more than 2,200 banks and credit unions that offer Zelle.”
Zelle’s decision is driven by the strong adoption of its service by banks and credit unions, with over 2,200 financial institutions now offering Zelle and nearly half a trillion dollars moved in the first half of 2024 (a 28% YoY increase). In essence, the company is not shutting down its service, rather it is retiring its standalone app while continuing to operate through bank and credit union apps.
Launched in June 2017, Zelle is a digital payment service, designed for peer-to-peer (P2P) transactions, making it easy to split bills, pay friends, or settle small debts.
Unlike apps like Venmo or Cash App, which hold funds in a separate wallet, Zelle transfers money directly from one bank account to another, typically within minutes, as long as both parties are enrolled. In 2023, transaction volume on the Zelle network increased by 28% year-over-year as compared to 2022. Reports of fraud and scams decreased by 50%. 95% of Zelle payments were completed without a report of fraud or scam in 2023.
Since its launch, the number of financial institutions offering Zelle has grown significantly. There are more than 2,200 financial institutions on the Zelle network, and consumers and small businesses moved nearly half a trillion dollars on Zelle in the first half of this year, up 28% year-over-year.