Zelle Marks $1 Trillion Milestone as P2P Payment Use Jumps

Last year appears to have been a landmark one for peer-to-peer (P2P) payment app Zelle.

During 2024, American consumers and small businesses transmitted more than $1 trillion using the platform, the most money ever sent on a P2P service in a single year, the company announced Wednesday (Feb. 12).

“Zelle is not just a popular way to send money, it’s a vital tool that’s transforming how money moves across America,” Denise Leonhard, general manager of Zelle, said in a news release.

“It is the go-to peer-to-peer payment method for millions of hardworking Americans, and this milestone is a testament to the trust they place in us every day.”

In addition to the $1 trillion milestone, Zelle said 2024 also saw a 23% jump in the total dollar amount sent using the app, with transaction volume at 3.6 billion, a 25% increase from 2023. The company said 151 million consumer and small business accounts are enrolled in Zelle, up 16% from 2023.

“The fourth quarter was the best in the history of Zelle in terms of total money sent driven by user growth and popular use cases like paying rent and holiday gifting,” the release added.

Zelle also noted the role small businesses have played in its growth, with nearly a quarter of its users sending a payment to such businesses in the fourth quarter of last year. Small businesses sent or received more than 500 million transactions last year, totaling $283 billion, a 32% increase over the prior year.

The news comes amid a jump in popularity in P2P payment apps, especially among younger Americans. Research by PYMNTS Intelligence has found that 53% of consumers between the ages of 18 and 25 and half of those aged 26 to 41 use P2P apps more frequently, citing economic pressures such as inflation.

“Despite the popularity of P2P payments, consumer satisfaction with these services is not universal. P2P platforms struggle to meet the diverse expectations of users, with many consumers encountering issues related to transaction speed and reliability,” PYMNTS wrote.

“Consider that 60% of U.S. consumers use P2P apps to pay bills, but 70% of users experience friction when paying bills via mobile wallets. The report found that one-quarter of users cited security and authentication as their primary frustrations.”

And while most FinTechs acknowledge these issues, the root causes are a source of disconnect. The research found that 41% of consumers who deposit money and 28% who withdraw money felt unhappy with the lack of guarantees for fund availability or transaction speed. Just a fraction of FinTechs recognized these concerns, showing a gap in meeting consumer expectations.