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American peer-to-peer (P2P) payments provider Zelle has officially shut down its standalone app, as the vast majority of users now access its services through their banks’ mobile platforms.
Zelle, owned by Early Warning Services (EWS), was launched in 2017 to facilitate seamless digital transactions between consumers and small businesses. The platform has since expanded to over 2,200 financial institutions, processing nearly $500 billion in transactions in the first half of 2024 alone.
Shift Towards Bank-Integrated Payments
The standalone Zelle app was originally introduced to serve individuals whose banks or credit unions had not yet integrated with the network. However, with financial institutions now handling 98% of Zelle transactions, the app’s relevance has diminished, accounting for just 2% of total usage.
As a result, EWS decided last year to phase out the app by March 2025, and it is now officially unavailable. Customers can continue using Zelle’s services through their respective banks’ mobile apps, ensuring uninterrupted access to digital payments.
Zelle’s Success and Regulatory Scrutiny
Despite its widespread adoption—boasting over 150 million enrolled users—Zelle has faced regulatory challenges. In 2024, the Consumer Financial Protection Bureau (CFPB) sued Early Warning Services, along with JPMorgan Chase, Bank of America, and Wells Fargo, over alleged failures to protect users from fraud and unauthorized transactions. However, the lawsuit was dropped last month.
As Zelle shifts fully to bank-based integration, the platform remains a dominant force in the U.S. P2P payments landscape, continuing to streamline digital transactions while navigating industry regulations and security concerns.
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