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Zelle shuts down standalone P2P payments app

With the vast majority of people using its services through their banks, American person-to-person payments provider Zelle is shutting down its standalone app.

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Zelle shuts down standalone P2P payments app

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Launched by bank-owned Early Warning Services in 2017, Zelle now has more than 2200 financial institutions on its network and was used by consumers and small businesses to move nearly half a trillion dollars in the first half of 2024.

At launch, Early Warning created a standalone Zelle-branded app for Americans whose banks or credit unions had not yet joined the network. But, this app is now used for just two per cent of transactions, with the rest carried out through banks' own apps.

As a result, last year, the decision was made to phase out the Zelle app by March and it is now no longer available.

While hugely popular, with over 150 million enrolled users, Zelle has also been controversial. Last year, the CFPB sued Early Warning Services and JPMorgan Chase, Bank of America and Wells Fargo, accusing them of failing to protect users from "widespread fraud". The case was dropped last month.

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