Zelle App Halts Money Transfer Services: What It Means for Canadian Users
The mobile payment app Zelle no longer permits users to send and receive monetary transfers. Nonetheless, the platform’s services continue to be accessible.
On Tuesday, the capability to move funds via the Zelle mobile application was suspended. announced In October 2024, the service was launched. Currently, Zelle is accessible exclusively via over 2,200 banks and credit unions across the United States that 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 customers from purported misconduct. "widespread fraud" via Zelle. The customers mentioned in the lawsuit claimed they lost over $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 wrongdoers to switch from one bank to another without addressing warning signs that could have stopped fraudulent activities.
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 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 institutions without needing to share 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.
Zelle app users have been getting emails along with in-app alerts regarding the changes to make sure all funds within the app were smoothly transferred.
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 can still be downloaded. What is its current function?
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. Nonetheless, its functionality has been altered since you can no longer make transfers via the stand-alone application.
The application is now "focused on educating consumers about scams and fraud." news release states. The list of financial institutions that offer Zelle is also available on the app.
Greta Cross is a national trending reporter at USA TODAY. Story idea? Email her at gcross@WellnessInvestigator .
This article originally appeared on USA TODAY: Zelle app no longer offering money transfer services. Here's what it means for users
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