With the majority of users accessing its services through their banks, American person-to-person payments provider Zelle is discontinuing its standalone app.
Launched by bank-owned Early Warning Services in 2017, Zelle now partners with over 2,200 financial institutions. In the first half of 2024, it facilitated nearly half a trillion dollars in transactions for consumers and small businesses. Initially, Early Warning created a standalone Zelle-branded app for users whose banks or credit unions had not yet joined the network. However, this app now accounts for just two percent of transactions, with the majority processed through bank apps.
As a result, the decision was made last year to phase out the Zelle app by March, and it is now no longer available. Despite its popularity—boasting over 150 million enrolled users—Zelle has faced controversy. In 2022, the CFPB filed a lawsuit against Early Warning Services and major banks including JPMorgan Chase, Bank of America, and Wells Fargo, alleging they failed to protect users from widespread fraud. That case was recently dropped.