P2P payments have surged over the past several years, with Zelle® emerging as one of the most dominant players. In 2024 alone, the platform processed over $1 trillion in payments, solidifying its position as a market leader. While many P2P solutions operate through standalone apps, Zelle has discontinued its app and is now exclusively offered through financial institutions.

The Rapid Rise of Zelle in the P2P Landscape

Zelle’s growth in 2024 was unprecedented, marking a defining year in the P2P space. With record-breaking adoption and transaction volume, Zelle has solidified its position as an industry leader. As other P2P solutions work to keep pace, Zelle’s performance has raised the bar for what consumers and businesses expect from real-time payments.

Zelle’s 2024 Performance

• By the end of 2024, Zelle had over 151 million enrolled users, an 11% increase from 135 million in 2023.
• The network processed more than 5 billion transactions, exceeding $1 trillion in annual payment volume. (the first P2P payments service to cross this threshold)
• The total dollar amount sent through Zelle increased 27% year over year.
• $283 billion in payments were sent or received by small businesses, a 32% increase from 2023⁴.

The Five Reasons Zelle Has Soared in Popularity

Zelle’s rise to the top of the P2P payments market is no accident. Its success lies in how well it aligns with the needs of today’s digital banking users, offering a fast, secure, and seamless payment experience within the platforms customers already trust.

Here are five key reasons behind Zelle’s widespread adoption:

1. Direct integration with financial institutions

One of Zelle’s biggest advantages is that it lives directly within the digital banking environment of your financial institution. Users can send and receive money directly from their checking or savings accounts without needing to move funds to an external wallet.

2. Near real-time payments

Zelle allows users to send and receive instant transactions at any time between participating banks. This functionality makes it ideal for everyday scenarios like splitting bills, paying rent, or reimbursing friends and family.

3. No additional fees

For most users, Zelle is free to use. Unlike some competitors that charge for expedited transfers or certain services, Zelle processes payments at no cost to the consumer. This fee-free experience enhances the platform’s appeal and encourages adoption for both personal and business transactions.

4. Secure platform

Zelle’s commitment to payments security is another critical component of its success. With less than 1% of transactions reported as fraudulent, the platform prioritizes user protection by leveraging real-time fraud detection and prevention measures. This reinforces trust among consumers and financial institutions alike.

5. No need for an additional app

Many users have seamlessly accessed Zelle through their bank’s existing mobile or online banking platform for years. This helps to provide an improved user experience and makes the payment process feel like a natural extension of day-to-day banking.

With more than 2,200 financial institutions already offering Zelle, now is the time for others to consider integration. Banks and credit unions that delay adoption risk falling behind the curve and losing prospective customers who increasingly expect Zelle as a standard feature of their digital banking experience.

The Zelle App is Gone. What Does That Mean?

As of April 1, 2025, Zelle has officially shut down its standalone app. This decision was driven by the fact that most users already accessed Zelle through their bank or credit union’s mobile app. Moving forward, previous Zelle app users will not be able to send or receive payments until they enroll with a bank or credit union that offers Zelle directly.

While this closes the door for Zelle app users, it opens a new opportunity for community financial institutions to reach out and acquire these potential account holders with convenient, real-time payments.

Leverage Zelle to Grow Your Institution

With millions of users now searching for new ways to access Zelle, financial institutions are uniquely positioned to turn this shift into a strategic advantage. By integrating Zelle, your institution can attract new account holders, increase digital engagement, and solidify its role in everyday financial activity.

But the clock is ticking. Institutions that hesitate risk creating a fragmented customer experience, increasing customer churn, and losing valuable transaction volume to third-party platforms. In a time when digital convenience is a key differentiator, hesitation could mean missed revenue and a weakened competitive position.

Here’s how your community financial institution can turn the Zelle app shut down into real growth:

Attract new users with recognized brand power:

• Zelle has strong brand recognition and consumer trust. By offering Zelle directly within your digital banking experience, your institution becomes an attractive destination for users displaced by the app’s shut down. These users are actively searching for where to go next and offering Zelle positions your institution as the immediate solution.

Strengthen digital engagement in your banking app:

• This shift gives your institution a chance to bring users back into your own digital environment. By becoming the hub for daily transactions, your app usage increases, translating into more customer touchpoints, deeper behavioral insights, and stronger customer relationships.

Reclaim your role in the digital wallet space:

• Zelle’s integration enables your institution to reassert control over the P2P space and reestablish itself as the go-to option for everyday digital payments. Keeping transactions within your ecosystem, you preserve deposit flow, reduce reliance on external platforms, and ensure your digital offerings stay competitive in a rapidly evolving payments landscape.

Keep Your Institution Top of Wallet

The average Zelle transaction is $275, which is four times higher than the average transaction on other major P2P platforms. This difference reflects Zelle’s unique model, where funds are transferred directly from one user’s bank account to another, entirely within the banking ecosystem. As a result, Zelle tends to be used for larger, more trusted transactions.

Integrating Zelle into your institution’s digital banking experience isn’t just about offering a convenient payment option, it’s a strategic move that strengthens the transactional foundation of your customer relationships. As P2P payments become an expected feature of everyday banking, offering Zelle keeps your institution relevant and embedded in the financial routines of your account holders.

Engaging Customers Through Everyday Payments

Regular use of Zelle drives consistent digital engagement. When customers use your mobile or online banking channels multiple times a week to send or receive funds, they build a habit of returning to your platform. Institutions that serve as the default for everyday transactions are better positioned to be top-of-mind when more complex financial needs emerge.

For example, during key life transitions, such as buying a car, moving, or considering a home loan, customers are more likely to begin their decision-making process with institutions they already interact with regularly. The consistent touchpoints facilitated by Zelle can translate into increased consideration for lending, savings, and advisory products.

Turning P2P Payments into Long-Term Relationships

Regular customer interactions within your digital banking platform are key to retaining customers. When your institution becomes the default platform for everyday transactions, it builds trust and familiarity that helps foster long-term loyalty, making third-party alternatives less appealing. The more embedded Zelle becomes in a customer’s financial life, the greater the likelihood that they’ll turn to your institution for future needs rather than seeking alternatives.

With the standalone Zelle app no longer available, users are now pushed to engage more deeply within your digital banking platform. This shift increases platform engagement and reinforces your institution’s role as the central point of daily financial activity. The more often customers use your app for essential transactions, the more likely they are to remain loyal over time.

Capture the Next Generation of Banking Consumers

This integration is particularly powerful for attracting and retaining younger customers. P2P payment solutions are especially popular among young professionals, and offering Zelle positions your institution as digitally relevant. In fact, over 45% of Zelle users fall between the ages of 18 and 34, an audience segment that opens the door for a long-term relationship. By meeting the expectations of this demographic now, your institution sets the stage for building deeper relationships over time, as their financial needs evolve.

Now is the Time to Act

With the Zelle app shut down, users are now turning directly to their financial institutions to access the service.

Zelle’s shift away from a standalone app isn’t just a product change, it’s a signal of where digital banking is headed. As consumers grow to expect real-time, embedded payment capabilities, community financial institutions have a timely opportunity to evolve alongside them.

Now is the time to act. Of the more than 2,200 financial institutions currently on the Zelle network, 95% are community banks and credit unions, helping to provide flexible payment options within their communities. Failing to offer Zelle puts your institution at risk of losing ground to competitors who already meet this expectation.

Position your institution for success in the evolving payments landscape and explore key insights in our Digital Payment Trends in Banking white paper.

Read the white paper