Zelle Business Model: How Does Zelle Make Money?

Zelle is a USA-based app for digital payments. It allows peer-to-peer money transfers and simplifies the process of financial institutions. You don’t have to handle cash and visit the bank if you use Zelle app. Several businesses want to know how does Zelle make money because of its popularity.

More than 100 million people use Zelle and interestingly around 98% of Americans have access to Zelle. Our app development company has also made apps similar to Zelle and Paypal. So, our developers can explain better how Zelle makes money in this post.

But before jumping to understand the Zelle payment network, you must go through the information about what is Zelle, its origin, and its expansion story. It will help you grasp the money-making idea of the app effectively.

Here you go!

Looking for professional developers for your online payment app idea CTA1

What Is Zelle?

Zelle is an app to send and receive payments online. It is a payment network partnered with leading banks and credit unions across the USA. You can send money to friends, family members, and others using your Zelle account.

Zelle was launched in 2017. Although it’s not as popular as Paypal and Venmo apps, became successful in a short period.




Around 924 banks are connected to the Zelle payment network. Users of Zelle transferred $187 billion in 2019, $307 billion in 2020, and $490 billion in 2021. Furthermore, the year-over-year increase in payments is received by small businesses. Consequently, numerous businesses and banks are turning to the Zelle app.

So, it can be a great app idea to make money for various enterprises and individuals as well. You can go for an on-demand app development company and share your idea for an app like Zelle.

How Does Zelle App Work?

Zelle offers a safe way to transfer money to anyone you want, but he should be registered on Zelle. No matter how far is your bank and credit union, you can send and receive money at any time. Zelle has many participating banks that make the transaction process smooth.

Check out the steps and know how does Zelle app work.

1. Download the App



If you already have Zelle from your bank and credit union so need to download it. However, you will have to download it in case your bank doesn’t provide that service and link that to the bank account.

2. Enrolling with App

Enroll with the App zelle


After enrolling with the Zelle app, you need a U. S. mobile number or email address to transfer money from your banking app. You can send money to school, college, shopkeeper, babysitter, plumber, car washer, and almost to anyone.

This online payment system allows you money transfers from one bank account holder to another.

3. Send the Amount


Send the Amount zelle

Now enter the money you want to send to another Zelle app user. If the recipient is not enrolled with Zelle, he will get a notification that will explain how to get money quickly.

Explained: A Story of Zelle

Today people from different professions like contractors, property managers, and health and beauty providers use the Zelle app for receiving and transferring money. It has been getting popular among the masses year after year, since its launch in 2017.

So, what is the story, and whose brainchild is Zelle?

Bank of America owns early warning services and it owns Zelle. In 2011 clear exchange services were launched. It was used to offer business-to-business, business-to-consumer, and customer-to-customer payments.

many financial institutions partnered with Clear exchange to include credit unions or other banks. Initially, capital one and US banks were added for peer-to-peer money transfers. People started to leave the traditional bank transfer process after the sending and receiving concept of the bank of America.

In 2015 transfers used to take more than 5 minutes. So, the clear exchange announced the opportunity for a real-time payment network. In 2016, Early warning services purchased clear exchange. And then in 2017, Early warning services LLC, launched the Zelle app. Bank of America suggested sending and receiving money through Zelle.

Soon it became a popular online payments platform. It lets users send money and receive it in real-time. Participating users can be anyone who has a bank account. It offers a simple way for money transfer therefore various businesses are inspired by it.

Today, many enterprises want to hire mobile app developers to have apps similar to Zelle. Many of them want only a few banks connected to their apps because of various reasons.

Comparison of Zelle with Popular Online Money Transfer Services

There are several other instant money transfer platforms. Apps in the competition with Zelle are Paypal, Venmo, and Cash App. Let’s compare them with Zelle.

Criteria Zelle Paypal Venmo Cash App
Money transfer with Debit card No Yes Yes Yes
Money stores in account No Yes Yes Yes
More convenient and cheaper way to receive payments Yes No No No
Fees for rush transfer No Yes Yes Yes

Fintech apps are growing faster and making the lives of people easy. Various types of digital payments network are present in the market. People use apps like Dave to borrow money and it has also gained popularity for small cash transfers.

How Does Zelle Make Money?

The market abounds with several apps. But until an app makes money for you, it can not be a successful idea to develop an app. People receive money and send money, but how does it help the app owner to make money? In this section, we will talk about Zelle’s revenue generation ways or how Zelle makes money.

Zelle was made to save banks money. So doesn’t make money directly. There is no independent revenue stream for Zelle to generate revenue.

Participating banks generate revenue whenever Zelle users use the Zelle network for sending money. If online money transfers don’t help, then how does Zelle makes money?

It neither charges customers nor banks for transferring money. It benefits consumers for low-cost p2p money transfers. Moreover, Zelle launched another function in 2018, purchasing groceries through merchants’ pay. They have to pay a 1% fee for taking services. This amount is used to keep the payment network running smoothly.

So, right now Zelle makes no money. But in the future, we can expect some functions in the app that can make money for Zelle. Moreover, improvement and changes in the services may drive Zelle to make money in the future. It was about the Zelle business model.

If want, then you can generate revenue by charging fees for rush payments and others in your app. A private financial services company also trusts the app. Zelle for business offers a great idea. But you have to decide how to make money through instant money transfer apps.

Want a scalable app similar to Zelle, Paypal, and Venmo CTA2

Steps to Send Money with Zelle?

For new banking customers, it is quite difficult to trust that an app moves money. How do integrated payment platforms work with the help of payment networks when you send money? Scroll down to know the steps.

  1. Go to Send Money
  2. Select Recipient
  3. Enter the Amount & Choose Funding Account
  4. Review the Details
  5. Recipient Is Notified

Step 1: Got to send money

Sign in to chase and wells Fargo online. Move to the option send money Zelle. Now sign on and tap Zelle. Enroll first, in case you are not. For this, you must have a US-based mobile number or email address. Now link your deposit account.

Step 2: Select Recipient

You will see a + Icon on the upper right corner of your smartphone screen. Click on it to add a recipient. Apart from it, you can select the name of your recipient if he/she is already on the list of recipients. Select their names or you can narrow to the right of their names.

Step 3: Enter the amount & Select Funding Account

In the third step, you have to enter the amount you want to send and choose a user’s bank account to fund your payment. If you are using mobile banking app on your laptop or tablet devices, you can select a delivery speed, text, and continue.

Step 4: Review the Details

Review the payment details before the final submission. If is it the first time you are sending money, verify your identity with the Zelle code. We show you the name of the recipient before you click send if he is enrolled with the Zelle app. You will get a confirmation message and payment details after the payment.

Step 5: The Recipient is Notified

A text message or email appears on the phone to notify the recipient about the payment details. If the recipient’s bank account is not linked to Zelle, it shows some steps that tell how to receive money.

There are some limits on Zelle. It is a daily or 30-day limit. And sending money limit vary on your funding account.

How to Receive Money from Zelle?

Receiving money doesn’t include many steps. It is a simple process.

Make a Zelle account with an email address or US mobile number. You have to provide your email address or mobile number to the person who will send you the money. It becomes easy to send and receive money when the sender and receiver are enrolled with Zelle. There is no limit to receiving money on Zelle.

If you are planning to make an app from scratch, this piece of information with help you. Be proactive when you want an impeccable app from professional developers.


Payment apps have become a crucial part of different businesses because they eliminate the need of handling a credit or debit card all the time. Bank account holders can use the Zelle network because it enables users to send money at any time. if you also have plans to make such an app contact Technource. We have experienced and dedicated app developers who consider the mobile app development trends for impeccable software solutions.

We sign NDA as well to protect your app idea. You can choose participating banks for your app and allow specific bank accounts. Customize your payment app the way you want to.

Want to know how much it exactly costs to develop an app like Zelle CTA3


Mr. Sanjay Singh Rajpurohit, An early-aged entrepreneur who always leads his team from the front and achieved success. As the founder & CEO of Technource, a top mobile app & Web development company, he made a global presence in a short time by offering custom software development, premium mobile apps, and website development services to global clients. In his free time, he loves writing. He is featured on Hackernoon, Dzone, Enlear Academy, Articlesfactory, and much more websites.

Request Free Consultation

Amplify your business and take advantage of our expertise & experience to shape the future of your business.