Zelle has announced that it will be discontinuing its standalone app, as stated in a recent company blog post, effective Tuesday.

For the over 150 million customers in the U.S. who utilize Zelle for person-to-person transactions, this news may come as a surprise. However, it’s worth noting that only a small percentage, approximately 2%, of Zelle’s transactions are conducted via its standalone app, which is the reason behind the company’s decision to discontinue it.

The majority of Zelle users access the service through their banking institutions, enabling them to send money directly to their phone contacts. Those who relied on the standalone app will need to re-enroll in the service through an alternative financial institution to continue using Zelle.

Given the relatively small user base of the Zelle app, it is logical that the company would choose to discontinue it, as maintaining an app requires significant time and resources, especially when sensitive financial information is involved.

Zelle was launched in 2017 with the backing of 30 banks, aiming to provide a more efficient alternative to Venmo. Unlike Venmo, which requires users to receive payments into their Venmo wallet before depositing them into their bank account, Zelle offers instant transfers without additional fees due to its direct connections with banks.

In 2024, Zelle reported that users sent a record-breaking $1 trillion in payments, surpassing any other payment app. This may be attributed to the fact that consumers often use Zelle for larger transactions, such as rent payments, whereas Venmo is more geared towards social uses, like reimbursing friends for expenses.