How does Zelle make money? Who owns Zelle? Business model explained

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Zelle is a peer-to-peer (P2P) payment network that allows users to send money to family and friends quickly and easily. The service is free to use, and available to anyone with a U.S. bank account and a smartphone. Additionally, there are no fees for sending or receiving money. So, how does Zelle make money?

How Zelle makes money

Zelle is a no-fee platform, hence the app does not make any money as of today. Zelle was actually created to save banks money. It does not directly generate revenue but at the same time makes a lot of money through transaction cost savings for the network of banks that collectively boasts over 120 million customers across the united state.

While Zelle doesn’t make a lot of money per transaction, the volume of transactions on the network is high, so the company is able to generate a significant amount of savings in transaction fees for participating banks. In addition, Zelle is owned by a consortium of major banks, so the company also benefits from the interest and fees that these banks earn on the money that moves through their network.

Who owns Zelle?

Zelle is owned by Early Warning Services, a fintech company owned by a consortium of banks. Currently, 924 banks participate in the network. In 2020, it facilitated over $307 billion in payments and 1.2 billion transactions. A staggering increase of 58% volume compared to the year 2019.

Early Warning Services, LLC is a provider of risk management solutions for financial institutions in the United States. The company was formed as a joint venture between Bank of America, BB&T (Truist), Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo. Early Warning Services is headquartered in Scottsdale, Arizona.

The company’s primary product is Zelle, a person-to-person digital payments platform that allows users to send and receive money using only a mobile phone number or email address. Zelle launched in September 2017 and is available through the mobile banking apps of over 900 participating banks and credit unions.

In 2018, Early Warning Services processed over $75 billion in payments volume on behalf of its owners and other financial institutions. The company has over 100 employees.

Early Warning Services was formed in response to the growing threat of fraud and identity theft. The company’s mission is to provide its owners with the tools and resources they need to protect their customers from fraud and financial crimes. Early Warning Services is majority-owned by its seven-member banks, with each bank owning an equal stake.

How to send money with Zelle?

There are a few things to keep in mind when using Zelle to send money. First, you’ll need to make sure that your recipient also has a Zelle-supported bank account. Second, you’ll need to have your recipient’s phone number or email address so that they can receive the money.

Once you’ve set up your account and have your recipient’s information, sending money with Zelle is easy. Simply log into your Zelle account and tap “Send Money.” enter the amount you want to send, select your recipient, and enter the recipient email ID. Fill the “What’s this for” field with a valid reason and hit send. The money will be deposited into your recipient’s account within minutes.

Overall, Zelle is a very efficient way for banks and other financial institutions to facilitate money transfers to customers.

Is there a fee to use Zelle? (and how much)

Zelle is free to use. You don’t pay any fee to send or receive money through Zelle.

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However, keep in mind that your bank or credit union may charge its own fees. For example, they may charge a fee for sending money, receiving money, or both. Be sure to check with your bank or credit union to see if they charge any fees for using Zelle through their platform (but that’s very unlikely).

What’s the catch with using Zelle?

Zelle is free to use sounds too good to be true, so you may be wondering what’s the catch?

Zelle is 100% free to send or receive money to and from others without any fees, and there is no catch for using it. That said, there are a few things to keep in mind. First, your bank may charge you a fee for using Zelle, but that’s pretty uncommon. Second, you’ll need to have a bank account or debit card in order to use Zelle. Finally, Zelle is not available in all countries. If you’re looking to send or receive money internationally, you’ll need to use a different service.

Another important thing is that your bank has to be connected to the Zelle network. To get started with Zelle, you’ll need to enroll your bank account in the service. Once you’ve done that, you can start sending money to others by entering their phone number or email address. The person you’re sending money to will need to have a bank account in the United States in order to receive the funds.

What are the benefits of the Zelle network?

The Zelle network offers a number of benefits for users. First, it is a convenient way to send and receive money. Second, it is fast and efficient. Third, it is secure and safe. Finally, it is affordable because it’s free.

What are the disadvantages of the Zelle network?

There are a few disadvantages of the Zelle network. First, it is only available to users in the United States. Second, it is not available to everyone. Only banks that are part of the Early Warning Services consortium can participate.

Does Zelle make a profit?

Zelle was created by a consortium of leading US banks not to make a profit but to save money. So while Zelle does not generate revenue directly, the banks that own it likely see cost savings as a result of using the platform.

What percentage does Zelle take?

Zelle is free to use without any charge, a convenient way to send money to friends, family, and businesses with a U.S. bank account.


With so many platforms for sending and receiving money such as Venmo and PayPal, Zelle is by far one of the best. Zelle’s direct link to your bank account makes it the most convenient option for P2P payments. And, because it’s backed by major US banks, you can be sure that your money is safe.

With Zelle, there are no hidden costs or fees and the process is super fast and easy. I’ve never had any problems with Zelle and I would definitely recommend it to anyone looking for a safe and secure way to send or receive money.

If you’re looking for a convenient way to send money to friends and family, Zelle is a great option. With its easy-to-use interface and fast transaction times, it’s no wonder that Zelle has become one of the most popular digital payment networks.

One thing to keep in mind is that Zelle is designed for sending money to people you know and trust. That’s why it’s important to only send money to people who you know and trust. If you’re ever in doubt about a transaction, you can always contact Zelle customer support for help.