The mobile payment app Zelle no longer permits users to send and receive money transfers. Nevertheless, the platform’s services continue to be accessible.
On Tuesday, the capability to move funds via the Zelle mobile application ceased functioning. announced The service was launched in October 2024. Currently, Zelle is accessible exclusively via "over 2,200 banks and credit unions" across the U.S., which provide the platform through their websites or mobile applications, as stated by them. Zelle website .
The decision was made because roughly 2 percent of Zelle transactions occurred via the separate Zelle app. company reported last year.
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In December 2024, the U.S. Consumer Financial Protection Bureau initiated legal action against JPMorgan Chase, Bank of America, and Wells Fargo due to their failure to safeguard consumers from purported issues. "widespread fraud" via Zelle. The plaintiffs in the lawsuit claimed they lost more than $870 million during a seven-year span.
The U.S. Consumer Financial Protection Bureau alleged that the banks broke federal laws by enabling criminals and habitual violators to move from one bank to another without addressing warning signs that could have stopped fraudulent activities.
In reply, Zelle asserted that the "attacks" The claims against the company were both "legally and factually defective," and they argued that these claims would empower criminals, lead to higher costs for consumers in terms of fees, hinder small enterprises, and create challenges for countless community banks and credit unions trying to stay competitive." The legal action was dismissed in early March.
Here’s what you should be aware of regarding the update to Zelle and how it impacts its users.
What is Zelle?
Zelle, established in 2017, is a digital payment system enabling individuals to transfer funds directly between their banking accounts, irrespective of whether they utilize the same financial institution.
In what ways can you keep using Zelle without having the app installed?
To utilize Zelle, individuals must currently register with one of over 2,200 participating banks or credit unions that provide Zelle via their mobile applications or online platforms. However, those who already have access to Zelle through an affiliated financial institution won’t need to make any changes.
Zelle app users have been getting emails along with in-app alerts regarding the adjustment to guarantee that all funds within the application were successfully moved.
Which financial institutions provide Zelle services?
The complete roster of banks and credit unions offering Zelle can be found at enroll.zellepay.com .
The Zelle app remains accessible for downloading. So, what is its current functionality?
The Zelle app continues to be usable for those who have previously downloaded it, and it’s still possible to get the app from app stores. Nevertheless, its functionality has been altered since you can’t transfer funds via the stand-alone application anymore.
The application is now "focused on consumer education regarding scams and fraud." news release The list of financial institutions offering Zelle can be found within the app as well.
Greta Cross is a nationally trending reporter for USA TODAY. Interested in pitching a story? Send an email to her at gcross@Pawonation .
The article initially appeared on USA TODAY: The Zelle app has ceased providing money transfer services. This change impacts its user base as follows.
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