SAN FRANCISCO, California — Zelle, a popular online money transfer service, discontinued payment functions in its standalone app on Tuesday, redirecting users to its services integrated within bank and credit union platforms. The app, first launched in 2017, will remain available on the Apple App Store but will now serve as a resource for consumer education on scams and fraud rather than facilitating transactions.
The company, which is built into the mobile apps and online banking systems of approximately 2,200 financial institutions, cited low usage of its standalone app as the reason for the change. According to a press release issued in October, fewer than 2% of Zelle transactions occur through the app, with the vast majority processed through partner banks and credit unions.
“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,” the company stated.
Zelle reported significant growth earlier this year, announcing in February that it had reached 151 million enrolled users and facilitated over $1 trillion in transactions throughout 2024. The service has become a cornerstone of peer-to-peer payments in the U.S., rivaling platforms like Venmo and Cash App.
The decision to phase out the standalone app’s payment capabilities comes amid a turbulent year for Zelle. In 2024, the Consumer Financial Protection Bureau (CFPB) filed a federal lawsuit against Early Warning Services, the company that operates Zelle, along with three major U.S. banks. The suit alleged that Zelle and its partners rushed the platform to market without adequate safeguards against fraud and failed to address known vulnerabilities for years. The case was dismissed shortly after President Donald Trump took office in 2025, though no official reason for the dismissal was provided.
While the standalone app no longer supports transactions, Zelle emphasized that users can continue sending and receiving money seamlessly through their bank or credit union’s app or website. The company said the shift aligns with its goal of enhancing security and user experience within trusted financial ecosystems.