Zelle will shut down its app, but you shouldn't worry too much.

Zelle has announced that it will shut down its standalone app next Tuesday, according to a company statement. This decision may be concerning for the more than 150 million users in the United States who use Zelle for person-to-person payments. However, only about 2% of transactions are made through the Zelle app, which explains the reason behind its discontinuation.

Most consumers access Zelle through their banks, allowing them to send money directly to their phone contacts. Those who relied on the standalone app will need to re-register for the service through another bank or financial institution. Given the small number of users of the Zelle app, the decision to eliminate it is understandable, as maintaining an app that handles financial information requires significant time and resources.

Zelle launched in 2017 with the backing of 30 banks, positioning itself as a more efficient alternative to Venmo. Unlike Venmo, where users must wait several days for deposits to process unless they pay a fee for an instant transfer, Zelle can offer immediate transfers at no extra cost due to its connections with banks.

In 2024, Zelle reported that its users sent a total of $1 trillion in payments, setting a record that surpasses any other payment app. This is partly because consumers tend to use Zelle for larger payments, such as rent, while Venmo is generally used for more social transactions, such as reimbursements among friends.