Zelle Launches an SMB Feature As Volume Soars

Zelle, the peer-to-peer payment service, appears on track for a banner year with a record 2 billion transactions processed in the first six months of 2025, a 19% increase from the 2024 first half. The dollar amount of these transactions increased more, reaching nearly $600 billion, up 23% from $481 billion, Zelle owner Early Warning Services LLC announced last month.

Zelle data show growth is up across all segments. It was strongest in payments from individuals to small businesses, which rose 30% year-over-year, followed by small business–to–individual payments, up 22%.

Now, Early Warning is launching a new feature to make it easier for small businesses to use Zelle. The small-business Zelle tag is being rolled out by participating banks and credit unions, Denise Leonhard, Zelle general manager, said in an email.

“By the end of the year, many small businesses will be able to claim a custom handle (e.g., “brooklynbarbeque”) that directs customer payments straight into the business’s eligible bank or credit union account—no email address or U.S. mobile number needed,” Leonhard said.  In April, Zelle said about 7 million small businesses were enrolled in the P2P payment service, with many using it for payroll, purchasing inventory, and vendor payments.

Zelle also said there was a 20% increase in the number of active users making individual-to-small business transactions over the first six months of 2024 and a 5% increase in the average dollar amount.

“Whether it’s paying for child care, hiring a contractor, or supporting farmers-market vendors, consumers value the ease and dependability of paying directly from their bank account,” Leonhard said.

Growth in other segments increased, too. Rent transactions were up 13%, payments made on weekends grew 18%, and babysitter payments increased 7%. The classification is based on self-reported memo fields Zelle users voluntarily fill in. Launched in 2017 by bank-backed Early Warning, Zelle says the momentum from the first six months spilled into August, too. At more than $108 billion sent last month, it was the biggest month ever for the P2P payment service.

Rent payments made with Zelle also stand out, partly because the volume is up 25% and the average rent amount increased nearly 5% to $958 from $914. Zelle can make it easier for roommates, in particular, to cover rent, she says. “And, at a time when housing costs continue to rise, it’s striking to see more people turning to Zelle to manage one of their largest and most important expenses.”

Zelle’s popularity can be attributed to many factors, Leonhard says. “These are big, foundational expenses, and people choose Zelle because it delivers reliability. What really sets Zelle apart is that it’s already embedded in more than 2,200 banks and credit unions, with over 151 million enrolled user accounts.”

Leonhard also notes that so-called super users, those who use Zelle the most, are the top 20% of most active users and represent 60% of the total network volume. “Our analysis of Zelle super users—those already active on the platform, not just those now shifting from cash or checks—shows meaningful patterns in how Americans are choosing to spend their money,” Leonhard says.

Zelle says even at this scale, its fraud rate is just 0.02%. While acknowledging it could change as new product features are added and criminals evolve their attacks, it means 99.98% of all Zelle transactions are made without reported fraud or scams.