Zelle, the US peer-to-peer (P2P) payments network, has announced a record-breaking $1 trillion in transactions processed in 2024, marking a 27% year-over-year increase.
Zelle surpasses $1 trillion in transactions
With a total of 3.6 billion transactions, Zelle continues to redefine the landscape of instant payments in the US.
Its adoption has accelerated across both consumer and business segments, reflecting the growing preference for seamless digital payments.
The network now boasts 151 million enrolled users, an increase of 16 million from 2023, highlighting its expanding reach.
Q4 2024 was the platform’s most successful period, driven by increased usage for holiday gifting, rent payments and small business transactions.
According to Denise Leonhard, General Manager of Zelle, the milestone underscores consumer trust in the platform.
“Zelle is not just a popular way to send money, it’s a vital tool transforming how money moves across America. We remain focused on expanding access because Zelle unlocks opportunities for individuals, small businesses, and financial institutions alike,” She said.
Small Businesses Fuelling Growth
Zelle’s impact extends beyond personal transactions, with small businesses emerging as a significant driver of growth.
The number of small businesses using the platform increased substantially, with:
- 23 million users sending payments to small businesses in Q4 2024.
- 500 million business-related transactions, up 32% from 2023.
- $283 billion in small business transactions processed through Zelle, also a 32% increase year-over-year.
From farmers markets to local service providers, small business owners are leveraging Zelle’s instant payment capabilities to manage cash flow, reinvest in operations and pay employees without delays or processing fees.
Supporting Community Banks & Credit Unions
Zelle also plays an increasing role in strengthening community banks and credit unions, providing 2,200 financial institutions – including minority-owned and rural banks – with a competitive edge.
A recent survey revealed:
- 74% of users feel more positively about their bank because of Zelle.
- 1 in 3 users would switch banks if their financial institution stopped offering Zelle.
By offering big-bank digital capabilities to smaller institutions, it helps retain customers and promote financial inclusion.
Fighting Fraud & Enhancing Security
Like all platforms of its nature, Zelle has seen it share of fraud rise as transactions have increased. Fraudsters use social engineering, phishing and impersonation to deceive victims into authorising payments, which are often irreversible.
Fraud Statistics:
- Estimated fraud and scam exposure reached $725 million, up from $440 million in 2021.
- About 2.9 million payments, or one-tenth of 1% of total transactions, were reported as fraud or scams in 2023.
- Zelle claims that 95% of payments were completed without a report of fraud or scam in 2023.
- Reports of fraud and scams decreased by 50% in 2023 compared to the previous year, despite a 28% increase in transaction volume.
However, Zelle’s record-breaking growth in 2024 underscores its role as a dominant force in digital payments. With increasing small business adoption, expanded banking partnerships and a commitment to fraud prevention, Zelle is set to further transform how Americans send and receive money.
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