Zelle, a leading U.S. peer-to-peer payments service now serving as a go-to offering for most financial institutions, recently onboarded 337 new partners last year.

Expanding Reach

Nearly all of these new additions were community banks or credit unions managing assets below $10 billion. Together, they serve a diverse customer base, including farmers, small business owners, and underserved communities.

Growing Use Cases

Beyond its initial design for P2P payments, Zelle has seen increasing use for everyday transactions such as recurring expenses like rent and utility bills.

Embedded Service Model

Since launching in 2017, the platform grew significantly through its integrated approach. Initially created to compete with apps like Venmo, PayPal, and Cash App, Zelle set itself apart by embedding its service directly into financial institutions’ mobile and online banking platforms.

Achieving Success

In the first half of 2025, U.S. consumers and small businesses completed about two billion transactions on the platform, marking a 19% year-over-year increase from the previous period. Transaction value grew by nearly 25%, reaching almost $600 billion.

The segment focused on small business payments saw the fastest growth, rising by nearly one-third compared to the same time last year.

Challenges and Responses

While Zelle has gained significant traction, it faces challenges. The near-real-time settlement feature can be a double-edged sword—once a payment is sent, there’s often limited recourse for fraud victims who are tricked into making transactions.

Fraud concerns have led to scrutiny from the U.S. Consumer Financial Protection Bureau and legal action by New York State, accusing Early Warning Services of neglecting platform vulnerabilities despite being aware of them.

In response, JPMorgan Chase updated Zelle’s terms of service to give it more authority over payments—especially those originating from social media—citing rising fraud concerns as the main reason.