Zelle, a popular payment service, shut down its app on April 1, 2025. However, its services are not disappearing. The company warned of a shutdown in 2024, and the reason for this was that only 2% of transactions happen on the app. Most of Zelle’s 151 million users access the service through their bank’s app or website, and they will still be able to do this even with the app being shut down.
Existing Users
Those who utilized the app received messages about the change through emails in addition to notifications in the app itself before it shut down. These users must now re-enroll through their current banking application to continue using Zelle’s services. Some banks that belong to the network include Bank of America, Chase, Wells Fargo, TD Bank, PNC Bank, and Citibank. Users also have the option to switch to digital payment apps, such as Venmo, Cash App, Apple Pay, or PayPal.
The Evolution of Zelle
Zelle was launched in 2017 by roughly 30 banks to rival popular payment apps such as Venmo and Cash App. It wanted to create its app for people whose banks did not participate in the service. However, within the last eight years, over 2,200 banks and credit unions have adopted Zelle as compared to the 60 participants in 2017. Zelle users sent more than $1 trillion in 2024, which was the most money ever sent by a payment service in a single year.
A Long Time Coming
The payment service has been phasing out the ability for users to send money through its app since October 2024. The Consumer Financial Protection Bureau sued the company, in addition to three of the largest banks in the country, in December of 2024 for failing to protect their consumers from fraud on the payment network. However, the lawsuit has been dropped since then because Zelle said that the claim was without merit. The Consumer Financial Protection Bureau was associated with Joe Biden’s presidency, and its rules are currently changing with Trump’s current term.
Proceed With Caution
Users should take precautions when using any digital payment service. This is because these digital payment services are frequent targets for scammers. Chase Bank has started blocking some Zelle payments it believes to be fraudulent. Some tips to stay careful are to only send people to people you know and watch for red flags, such as urgent messages claiming to be from your bank or online messages for products or services that seem to be unusually inexpensive.
