The practice of transferring money instantly is ubiquitous in today’s economy, with two-thirds of adults worldwide now making or receiving digital payments, according to the World Bank. Zelle is one of the most popular digital payment services, with many banks and credit unions in the U.S. offering it in their banking apps or through online banking.
What Is Zelle?
Zelle is a payments network that allows people to send instant money transfers from their bank account to another person’s bank account.
Launched in early 2017 by Early Warning with just 17 banking partners, today there are more than 2,200 financial institutions on the Zelle Network. In 2024, over 151 million enrolled users transferred over $1 trillion.
[Read: Best Checking Accounts.]
How Does Zelle Work?
Zelle lets users send money from their bank accounts to another person’s account. This happens instantly even if the sender and receiver use different banks. Zelle itself does not charge users a fee to send or receive money. Zelle recommends that you check with your financial institution if there are fees for Zelle transactions.
To use Zelle, you need to activate it right from your bank’s app. Directions for activating Zelle should be available within your online or mobile banking platform if your institution is part of the Zelle network. Then, when you want to send someone money, you’ll just need that person’s mobile phone number or email address, and you can initiate a payment.
Unlike some payment apps that let you switch between different payment methods, with Zelle, you can only have one linked bank account at a time — at least for now. If you decide you want to switch to a different account, you’ll have to see if your bank’s app provides instructions for unlinking from Zelle.
One thing worth noting: The law requiring some payment networks to report account activity above a certain threshold to the IRS and provide form 1099-K does not apply to the Zelle Network.
How to Use Zelle
There are two main ways to use Zelle:
Through your mobile banking app. The vast majority of banking apps already have Zelle available. Look for it in your dashboard, or it may be listed as a payment tool. Once you find it, Follow the steps to enroll so you can start sending and receiving money.
Through online banking. If you can use Zelle through your bank or credit union app, you may also be able to access it on the bank’s website.
Once you have Zelle set up, you can use it to send or receive payments.
Sending payments. Whether it’s to reimburse a friend for dinner or sending a birthday gift, all you need to send someone a payment is an email address or cellphone number. As long as that person has a U.S. bank account that uses Zelle, you can transfer money directly to their bank account. If they are already set up as a Zelle user, they’ll see the money in their account in just a couple of minutes. If they have not used Zelle before, the email or text they receive will provide instructions on how to accept payment. Once your recipient receives the money in their bank account, the transaction cannot be canceled.
Accepting payments. If someone sends you money via Zelle and you’re already enrolled, the funds will go straight to your bank account. If not, you’ll get a notification explaining how to complete the payment. This will involve seeing if your banking app has Zelle. If the latter is the case, there will be instructions within your bank’s app on how to set up Zelle.
[Read: Best Savings Accounts.]
Which Banks Use Zelle?
A better question might be which banks don’t use Zelle. The payment option is currently available in over 2,200 banking apps. You can head to Zelle’s site and check its list of participating financial institutions to find your bank or credit union. Once you do, it should link out to your bank’s specific step-by-step instructions for using Zelle.
Can I Use Zelle Without a Bank Account?
You may not be able to use Zelle without an eligible bank account, even if you had in the past. Zelle previously allowed users to sign up via its own mobile app, which allowed users to link eligible prepaid Visa or Mastercard debit cards from partner institutions to use for transfers.
However, Zelle is moving away from its mobile app and focusing on its partner network. Zelle stopped allowing new users to enroll through the mobile app in January 2025. By the end of March, existing users will no longer be able to perform transfers through the Zelle app.
Zelle shutting down its app closes off the main method of using the service without an eligible bank account, but the network of eligible institutions has expanded to over 2,200. You can use the directory on Zelle’s website to see if your bank or credit union is part of the network.
Zelle Alternatives
If you need to send someone money, there are other payment apps to consider in addition to Zelle.
Venmo
What it is: Part social app, part digital wallet, Venmo lets you pay or request payment from friends. The social aspect is you can share cute GIFs and emojis, leave comments and view a stream of Venmo activity.
How it’s different from Zelle: When you pay someone or get paid, the money stays in the Venmo account until it’s transferred to a bank account (which can take a couple of days), or you use the balance to make a future Venmo payment. You can also set up multiple funding sources including your bank account or a debit or credit card, or you can use funds that have accumulated in your Venmo balance.
PayPal
What it is: PayPal can be used to send or receive money, but also to make purchases online. It’s been around the longest of all the payment apps.
How it’s different from Zelle: PayPal may charge fees depending on the type of transaction or the payment method, such as a credit card. Like Venmo, you have to transfer funds out of your PayPal account to your bank account, and that can take a day or two unless you pay a percentage to PayPal for an instant transfer.
[Read: Venmo vs. Paypal: How These Payment Apps Stack Up.]
Apple Cash
What it is: If you’re an Apple user, Apple Cash is a digital card that’s part of your Apple wallet. It lets you send and receive money with other Apple users through messages. In other words, you can text someone money.
How it’s different from Zelle: Although there are other functions of Apple Cash, when it comes to sending money, the recipient must also be an Apple user. If someone sends you money, it stays in your Apple Cash account. You can use it anywhere that accepts Apple Pay, or you can transfer it to a bank account.
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Guide to Zelle Payments originally appeared on usnews.com
Update 03/13/25: This story was previously published at an earlier date and has been updated with new information.
