Zelle is closing its application, but you probably don't need to worry

Zelle is closing its independent application on Tuesday, according to a company Blog.

This news can be alarming if you are one of the superiors 150 million customers in the United States that use Zelle for person to person payments. But only about 2% of transactions take place through the Zelle application, so the company is suspending its independent application.

Most consumers access Zelle through their bank, which allows them to send money to their telephone contacts. Zelle users who trusted the independent application will have to register in the service through another financial institution.

Given the small user base of the Zelle application, it makes sense why the company would decide to get rid of it: maintaining an application requires time and money, especially one where people's financial information is involved.

Zelle launched in 2017 with the support of 30 banks to be a more efficient alternative to Venmo. In Venmo, users can receive payments in their own venmo wallet, which they can then deposit in their real bank account, but if you do not want to wait a few days for the deposit to be processed, you will have to pay a rate for an instant transfer. Due to Zelle connections with Banks, you can offer instant transfers without charging additional rates.

Zelle said that in 2024, users sent $ 1 billion In payments, breaking the records of any other payment application. This could be the case because consumers tend to use Zelle for larger payments such as rent. Venmo, on the other hand, is designed for more social social use, such as reimbursement of a friend for dinner.