Digital payments like Zelle and Venmo make it easy to send money to others, but Zelle has announced a major change to its operations.
As of April 1, the Zelle app has been discontinued. Now, with the Zelle app shut down, Zelle users will need to make a slight change in how they use the platform or find a different payment app.
Why Zelle shut down its app
Zelle, a digital payment network, simplifies the process of sending money to family and friends. With the app, users could send and receive money to and from the bank accounts of those they know.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Additionally, according to the Zelle website, more than 2,200 banks and credit unions offer Zelle through their mobile app or online banking services, giving Zelle users multiple ways to access the platform.
In October 2024, Zelle published a press release announcing that the business would gradually phase out the Zelle app. According to the press release, Zelle created its standalone app for consumers whose banks or credit unions hadn’t joined the Zelle network.
Zelle has grown significantly since launching in 2017, and approximately 2% of transactions now take place on that standalone app.
“As a result of our growth, and because most people are now using Zelle in their financial institution’s mobile app or website, we are making a change to the Zelle standalone app,” Zelle wrote.
Zelle encouraged users of the standalone app to start using Zelle through a bank or credit union that participates in the program.
How to still send and receive money with Zelle
Though the standalone Zelle app shut down, you can access Zelle through over 2,200 U.S.-based banks and credit unions.
Zelle maintains a list of participating banks and credit unions that you can search. If your bank or credit union participates in Zelle, you can access Zelle by downloading your bank or credit union’s app.
Once you’re signed up for Zelle through the bank or credit union’s app, you’ll be able to send and receive money directly through the banking app, including to friends and family who use different banks.
Zelle is free to use, but both parties must have an eligible checking or savings account.
Additional digital payment apps
If your bank or credit union doesn’t currently offer Zelle, they may join the platform in the future. You can also use several other digital payment apps:
- Venmo: With Venmo, you can easily send money to friends and family, and you can make payments to businesses in-store or online. Venmo doesn’t charge if you send money from a linked bank account, debit card or your Venmo account. If you use a linked credit card, there’s a 3% fee.
- Apple Pay: Apple Pay is built into the Wallet app on devices like your iPhone, iPad and Apple watch. You can add a credit or debit card, then make a contactless payment when checking out at a business. Over 85% of United States retailers accept Apple Pay, and you can also use it when making online purchases.
- PayPal: PayPal’s app functions as a digital wallet, allowing you to send and receive money all over the world. You can use the app to save cash back offers from the brands you shop from, track packages and more. PayPal charges fees when you receive payments from a purchase or from users outside of your country or region.
- Cash App: It’s free to send money to friends and family with Cash App when you use your Cash balance or a linked debit card. Cash App charges a 3% fee when you use a credit card to send money. You can also direct deposit paychecks into the app and invest in Bitcoin.
Stay safe with digital payment apps
Digital payment apps streamline the process of sending and receiving money, and they’re convenient and easy to use.
But scammers target apps and users sending online payments, especially if you’re buying items on social media.
These simple tips can help you stay safe:
- Only send payments to people you know and trust, and verify their name, cell phone number and email to be certain you’re sending payments to the correct user.
- Choose large, well-known digital payment apps with a strong reputation for security and customer service.
- Create a strong password that’s unique to the app and enable multi-factor authentication on your account.
- Stay aware of common scams, like scammers posing as a loved one in danger who urgently needs money or an online seller requiring you to pay a deposit before you can see the item in person.
Digital payment apps can be great tools, but just like using any banking or financial service, it’s important to focus on safety and security to protect your financial information.
Related Content
-
Cord Cutting Could Help You Save Over $10,000 in 10 YearsHow cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement RuleThe '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The Top Fourth of July Fireworks and Celebrations Across AmericaFrom Boston to San Diego, these iconic celebrations light up the sky — and the spirit of Independence Day.
-
Why Retirees Need a Budget, According to a New RetireeA new retiree explains why retirees need a budget.
-
My First $1 Million: Air Force Veteran, 68, Duluth, Ga.Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Your Home + Your IRA = Your Long-Term Care SolutionIf you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
Last Call for Fortnite Refunds: Parents Can Still File a ClaimThe FTC is sending out $126 million in refunds to families whose kids were charged for unwanted items in Fortnite — and there’s still time to file a claim.
-
How to Choose a Mortgage Lender in Five StepsNot all lenders are created equal — here’s how to compare offers, rates and terms with confidence.
-
A Meteorite May Have Hit a Home in Georgia. Would Insurance Cover the Damage?In a rare event, a meteorite may have crashed through the roof of a Georgia homeowner. Here’s what home insurance would cover.
