Zelle App Shutdown: Users Must Transition to Bank Services for P2P Payments

Zelle has announced the discontinuation of its P2P payment application, which enabled users to send and receive money from family and friends. This service was backed by major American banks, including Chase and Bank of America.

The customer base of Zelle in the United States exceeds 150 million. However, the company stated that only about 2% of transactions occur through its app. The majority of users access Zelle via their banks to transfer money to their phone contacts.

As a result, users of the standalone app will need to re-register for the service through a different financial institution.

Launched in 2017 with support from 30 banks, Zelle aimed to provide a more efficient alternative to Venmo. With bank backing, the payment network offers instant transfers without any additional fees.

According to Zelle, in 2024, users sent payments totaling $1 trillion, setting a record for any payment application.

In 2023, it was reported that banks like Bank of America and JPMorgan Chase began developing a digital wallet for online purchases. They sought to offer an alternative to popular systems from Apple, Google, PayPal, and Amazon. The project was spearheaded by Early Warning Services (EWS), a private financial company that developed and launched the Zelle app.