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Zelle, a mobile payment service that allows users to send money to other Zelle users via the app or through their bank’s digital banking platform, recently decided to shut down its standalone app.
The decision came after the company recognized that the majority of its users are not using the P2P app, but rather, they are using Zelle’s services through their preferred banks. As such, the standalone app was seeing barely any users, so by shutting it down, Zelle will eliminate unnecessary expenses. The service itself will still be available through partnered banks, just as it was until now.
Zelle Usage Is Blowing Up, But Its App Is Largely Ignored
Zelle was launched in 2017 by bank-owned Early Warning Services. Since then, over 2,200 financial institutions have joined its network, making it one of the most commonly used money transfer services.Â
It was used by both small businesses and individual consumers, and in the first half of 2024 alone, it moved nearly half a trillion dollars. The figure shows that Zelle’s services are very much needed and popular among Americans, but the same is not the case when it comes to its app.
The app itself was rolled out when the service itself launched, created by Early Warning. It was meant to be used by Americans whose credit unions and banks had not joined its network. However, after several years, most major financial institutions joined, and the app lost its user base. At this point, it is only being used for 2% of transactions, while others are conducted through various banks’ own apps.
As a result, Zelle decided last year to phase out the app by March 2025, and so with March passing, the app was finally shut down.Â
Despite its popularity and the fact that it is used by over 150 million enrolled consumers, Zelle has seen some controversy over the years. In 2024, for example, CFPB sued a number of banks, including JPMorgan Chase, Wells Fargo, Bank of America, and Early Warning Services itself, accusing them of failure to protect users from widespread fraud. This indirectly involved Zelle as well, but the case was dropped last month.