Zelle, the bank-owned peer-to-peer payment service, has officially shut down its standalone mobile application, completing a strategic shift toward full integration with partner banking platforms. The decision comes as the vast majority of transactions—approximately 98%—now occur directly through financial institutions’ native apps rather than the independent Zelle application. Launched in 2017 by Early Warning Services (a consortium including JPMorgan Chase, Bank of America, and Wells Fargo), the Zelle network has grown to include over 2,200 participating banks and credit unions, facilitating nearly half a trillion dollars in transactions during the first half of 2024 alone.
The standalone app was originally created to serve customers whose banks had not yet joined the Zelle network, but its usage dwindled as more institutions adopted the service. With only 2% of transactions still relying on the app by early 2023, Early Warning Services announced plans to phase it out, culminating in its complete removal from app stores in March 2024.
Despite its widespread adoption—with more than 150 million enrolled users—Zelle has faced criticism over fraud prevention measures. Last year, the Consumer Financial Protection Bureau (CFPB) sued Early Warning Services and several major banks, alleging insufficient protections against scams. The case was dropped last month, but concerns persist regarding reimbursement policies for fraudulent transactions. The shutdown of the standalone app marks the final step in Zelle’s transition from a consumer-facing payment app to a fully embedded banking service, reinforcing its position as the leading P2P payment network in the U.S.