Zelle is a peer-to-peer transfers and payments network that was founded by big banks who recognized they were falling behind in a world of Venmo. Today, Zelle is well-established at these founding banks, as well as other financial services. Today, Zelle is distributing a report on their small business users, shedding some light on how the service is being incorporated into daily operations.
According to the survey of the smaller firms:
- Almost 7 million small businesses are enrolled to use Zelle, with usage tripling in just three years.
- Small businesses received an average of $465 per transaction and sent payments averaging $630 in 2024.
- Zelle notes that it also works with an additional estimated 3-4 million individuals who use it to receive payments tied to independent or self-directed work.
- Speed and reliability matter most for small firms, like ensuring payroll is met and vendors are paid.
- May through August have a high volume of payments sent by small businesses. This is typically when seasonal industries ramp up staffing, and there is an increase in tourism, food service, recreation, landscaping, and construction. March is the busiest month for payments received .
Zelle reports that approximately 95% of the banks and credit unions that offer its services are community financial institutions, and 3 out of 5 small businesses say Zelle helps them build a deeper and more trusted relationship with their bank or credit union.
Importantly, 87% say they trust Zelle more because it operates in a regulated financial environment.
The top areas of the country where small businesses are using Zelle:
1. Los Angeles, Calif.
2. Miami-Fort Lauderdale, Fla.
3. New York, NY
4. Chicago, Ill.
5. Houston, Texas
6. Dallas-Fort Worth, Texas
7. Atlanta, Ga.
8. Washington, D.C.
9. Phoenix, Ariz.
10. Orlando, Fla.
Established banks could have ignored the need to compete with payments Fintechs, but the long-term impact would have been disastrous. While launching Zelle has not been without risk and a few hurdles along the way, Zelle now appears to be a success for banks, even if it recently shuttered its in-house app to double down on bank partner utilization.
