Zelle Streamlines to Bank Apps Amidst Fraud Concerns

Zelle is transitioning users from its stand-alone mobile app to bank apps as it aims to enhance user experience and security. With a vast network of over 2,200 banks, only 2% of transactions currently occur on the app. The focus will now shift to improving bank app functionality amid growing fraud concerns.

Zelle's parent company announced a strategic shift away from its stand-alone mobile app, directing users to access the peer-to-peer payments platform through banking apps instead.

Initially launched in 2017 to accommodate users from financial institutions not yet integrated into its network, Zelle has now expanded to over 2,200 banks. Subsequently, Early Warning Services, Zelle's overseeing company, reported that merely 2% of its transactions occur via the app.

This shift underscores Zelle's widespread adoption despite challenges from major competitors like ApplePay and GooglePay. As the standalone app pivots to focus on consumer education about scams, users must re-enroll at their institutions by March 2025, adding urgency amidst growing concerns about fraud and scams addressed by U.S. regulators.

(With inputs from agencies.)