What is Zelle and how does it work?
Zelle is a free payments app that is easy to use and transfers money fast. This mobile peer-to-peer payment app lets you send money directly from one savings or checking account to another. It's a good way to send money to someone you already know.
You don't need to know the recipient's bank account details to send money via Zelle. Instead, you can use their phone number or email address. Zelle will then send a text message or email to let them know there's a payment waiting.
This mobile payment app was created by some of the big banks and it now partners with more than 2,100 U.S. banks and credit unions. You can likely use Zelle's money transfer service through your banking app. If not, you can access Zelle as a standalone app. However, at least one person (sender or receiver) must have access to Zelle through their credit union or bank.
The Zelle app is easy to set up. All you need to do is enter your personal and bank information. You can then send money, request money, or split an expense with others. Each of these tasks is simple to do, and the app will walk you through the process. Plus, there are no fees to use Zelle.
Top perks
No fees
Zelle is free to download and use. Unlike some other payments apps, Zelle won't charge you to send or receive money. That said, checking with your bank is always a good idea to ensure it doesn't charge any money transfer service fees.
It's secure
Zelle sells itself as a secure money transfer app because it doesn't store your personal information. Your details stay secure with your bank and are never visible to Zelle.
However, the downside to an instant money transfer is that you may be unable to cancel the transaction. That's why you need to know and trust the person you're sending money to.
Money transfers are fast
This payment option is a great way to send money quickly. In most cases, those who are enrolled with Zelle can receive a money transfer within minutes. That makes handling your personal finance and money transfer needs even easier.
Integrated with banking apps
Zelle is already built into many banking apps, so you may not even need to download it separately. Its website lists 2,100-plus banking partners, including Bank of America, Chase, and Wells Fargo, and says 100 million people can access Zelle through their banks. Unlike other banking apps, there's no middleman. The money will go straight to the recipient's savings or checking account.