US-based Zelle has released a company statement in which it announced its plans to shutter its dedicated app due to low usage.
The decision affects only a small portion of its user base, as the majority of transactions occur through banking institutions rather than the dedicated app.
Zelle represents a widely used person-to-person payment service in the United States, which processes the vast majority of its transactions through participating banks. The company noted that only around 2% of payments take place via its stand-alone app, making it unnecessary to continue supporting the platform. Users who relied on the app will need to re-enrol through a financial institution that offers Zelle’s services.
The app’s discontinuation is seen as a cost-cutting measure, as maintaining an independent application requires ongoing resources, particularly when handling financial transactions.
Zelle was introduced in 2017 with the backing of 30 banks, aiming to provide an alternative to services such as Venmo. Unlike Venmo, which holds funds in user wallets before allowing withdrawals to bank accounts, sometimes with a fee for instant transfers, Zelle enables immediate money transfers without additional charges by working directly with financial institutions.
In 2024, Zelle reported that users sent a total of USD 1 trillion in payments, setting a new record among payment apps. The platform is commonly used for larger transactions, such as rent payments, while alternatives such as Venmo are more often associated with smaller, social transactions such as splitting dining expenses.
In March 2024, Zelle avoided a conflict with the Consumer Financial Protection Bureau (CFPB), which withdrew its lawsuit against Early Warning Services (EWS) the operator of the Zelle payment network. The lawsuit, originally filed in 2024, accused the companies of failing to address widespread fraud on the platform. This decision was seen as an effort by the current administration to scale back litigation initiated under its predecessor.
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