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Zelle Shifts Focus to Banking App Integration, Phasing Out Stand-Alone App Amid Fraud Concerns

Zelle, the peer-to-peer payments platform owned by a consortium of banks, is transitioning away from its stand-alone mobile app to focus on integrating its services within banking apps. This shift comes as only 2% of Zelle transactions occur through its mobile app, according to Early Warning Services, the company behind Zelle. The platform is now prioritizing improvements in functionality for banking apps, where the vast majority of its users prefer to send and receive payments.

Denise Leonhard, Zelle's general manager, stated that the strategy is aimed at enhancing the user experience on banking platforms, reflecting the widespread adoption of Zelle among U.S. financial institutions. While the stand-alone app will still be available, its new focus will be on consumer education regarding scams and fraud, alongside providing information on participating financial institutions.

Starting in March 2025, users of the stand-alone app will need to re-enroll with their respective banks or credit unions to access the Zelle network. This change comes amid growing scrutiny from lawmakers and regulators over fraud and consumer protection issues associated with Zelle. In response to these concerns, banks on the network have begun refunding victims of scams to bolster consumer trust.

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