The mobile payment app Zelle no longer allows users to send and receive money transfers. However, the platform's services remain available.

The ability to transfer money through the Zelle mobile app became unavailable on Tuesday, as announced by the company in October 2024. Now, Zelle is only available through "more than 2,200 banks and credit unions" in the U.S. that offer the platform through their websites or mobile apps, according to the Zelle website.

The decision came as only about 2% of Zelle transactions were made through the standalone Zelle app, the company reported last year.

In December 2024, the U.S. Consumer Financial Protection Bureau filed a lawsuit against JPMorgan Chase, Bank of America and Wells Fargo for failing to protect consumers from alleged "widespread fraud" through Zelle. Customers named in the lawsuit reported losing more than $870 million over a seven-year period.

The U.S. Consumer Financial Protection Bureau claimed that the banks violated federal law by allowing scammers and repeat offenders to hop between banks, ignoring the red flags that could have prevented fraud.

In response, Zelle claimed that the "attacks" on the company were "legally and factually flawed," and would strengthen criminals, cost consumers more in fees, stifle small businesses and make it harder for thousands of community banks and credit unions to compete." The lawsuit was dropped in early March.

Here's what to know about the Zelle change and how it affects users.

What is Zelle?

Founded in 2017, Zelle is a digital payment network that allows users to send and receive money from their bank accounts, even if the two users don't use the same bank.

How can you continue to use Zelle, without the app?

To use Zelle, users must now enroll in one of the more than 2,200 banks or credit unions that offer Zelle through their mobile apps or websites. If already using Zelle through a partnering financial institution, the user doesn't need to do anything different.

Users of the Zelle app had been receiving emails and in-app notifications about the change to ensure all money inside the app was properly transferred.

What banks and credit unions offer Zelle?

The Zelle app is still available to download. What does it do now?

The Zelle app is still accessible to users who have already downloaded it and the app remains available to download from app stores. However, its function has changed, as money can no longer be transferred through the standalone app.

The app is now "dedicated to consumer education about scams and fraud," a news release states. The list of financial institutions that offer Zelle is also available on the app.

USA Today