With its many advantages over rivals and the significant backing it has received from powerful corporations, Zelle, a relatively young digital payment network, has great potential to dominate the industry.
Zelle is a fee-free alternative to services like PayPal and Venmo that facilitates instantaneous payments between friends and family or streamlines company payments across several locations.
This article will explain when and how you can buy Zelle stock.
What Is Zelle?
Zelle is a payment network that facilitates the safe and rapid transfer of funds between bank accounts. Most Zelle transactions are completed in a few minutes, and money sent or received using the service is never charged a fee.
Year after year, the number of Zelle users has increased. In 2023, Zelle is projected to have 67.8 million users, reflecting a 10.1% annual growth compared to the 61.6 million users in 2022. Impressively, Zelle’s payment volume surged by 27% year-over-year in the second quarter of 2022. It reached a substantial $155 billion.
However, it’s worth noting that 13% of Zelle users reported sending money to scams, and 11% experienced unauthorized access to their accounts. Looking ahead, Zelle is expected to sustain a steady annual growth rate of 6.7% from 2024 to 2026. The Zelle mobile app has garnered over 10 million downloads from the Google Play store, indicating its popularity among users. Furthermore, Zelle’s network has made significant strides. This includes the addition of 1,700 banks and credit unions by September 8, 2022.
Notably, in 2020, Zelle users executed approximately 1.2 billion transactions. This amounts to a large sum of approximately $307 billion.
To facilitate instantaneous transfers between bank accounts in the United States, Zelle leverages the Automated Clearing House (ACH) payments system. It may take three business days to complete an ACH payment you start from your bank account to a friend’s bank account. If you use Zelle, your funds will appear within minutes.
Who Owns Zelle?
Do you want to know who owns Zelle? We provided this information for you. The banking giants Capital One, Bank of America, Truist, JPMorgan Chase, U.S. Bank, PNC Bank, and Wells Fargo own the fintech business that created Zelle, known as Early Warning Services, LLC. Zelle was developed by banks for banks, to assist in providing a digital payment option that benefits both their clients and the bank’s bottom line.
When is the Zelle Stock IPO?
Zelle is not a company with a public stock offering at this time. Both Zelle and its parent company, Early Warning Services, are privately held and so are not available for stock purchase.
U.S. Bank, Bank of America, Capital One, JPMorgan Chase, BB&T, PNC Bank, and Wells Fargo are among the other financial institutions that own Early Warning Services, and each of these stocks is available for investment.
Zelle’s stock price is unknown since the firm is not publicly traded. Comparing the IPO price to that of a mobile payment service like Venmo would be the most reliable method to evaluate the stock price. The initial public offering (IPO) of PayPal, Venmo’s parent firm, and other businesses in the sector could help us estimate the likely range of the company’s own IPO price.
How to Use Zelle
To successfully integrate Zelle into your financial life, it is important to first have an understanding of how it operates. Once you’ve created a Zelle account, it just takes a few clicks to begin transferring funds. It only requires a few basic maneuvers. Read this before making your first financial transaction.
How to Receive Money on Zelle
You need nothing more than a Zelle account to start receiving payments with Zelle. No further action is required if you already have a bank or credit union account. When someone sends you money through Zelle, the money will be put directly into your bank account.
You can sign up for a Zelle account using the app even if your bank doesn’t currently support the service. The first deposit to your account may take up to three days to process. However, future deposits should reach your account within minutes.
How to Send Money Using Zelle
Sending money to individuals you know and trust, such as friends and family, is easiest with Zelle. Babysitters, lawn care specialists, and hairstylists are just a few examples of service providers and small businesses that can utilize Zelle. Follow these steps to send money with Zelle.
- Input the Email or Phone Number of Beneficiary
Zelle allows you to transfer funds to anyone who has a bank or credit union account in the United States. You can send money to any Zelle account with only their email or cell number.
- Set the Amount You Wish to Send
When using Zelle, you’ll be asked for the amount. Enter an amount that is below your weekly limit.
- Send Funds
After pressing the “send” button, the money will be sent. If your loved one already has a Zelle account, sending them money will only take a few minutes. A text or email will be sent to them if they are not already registered, outlining the steps they need to take to get the money.
If the recipient hasn’t signed up for Zelle yet, you won’t be able to revoke the transaction. If the recipient is also a Zelle user, the funds will be transferred immediately and cannot be reversed.
To see if a payment can be reversed, access Zelle through the banking app or website. To view your account’s history, go to the history tab. To stop a pending payment, find it in the list and click “Cancel this payment.”
Zelle: Key Metrics
- According to reports, Zelle had 76 million users and transacted $75 billion in its first year of operation in 2017.
- Nearly 3,000 financial institutions joined the Zelle network in 2021, and consumers transferred $490 billion in 1.8 billion transactions.
- The Zelle Network processed 2.3 billion payments in 2022, for a total of $629 billion.
- More than 99.9% of all network payments have been processed without a single incident of fraud or scam being reported, and this figure is only expected to rise.
- There are currently more than 1,800 active financial institutions; 97% of FIs that joined the Zelle Network in the previous 12 months had assets of less than $10 billion each.
Zelle vs Venmo: What Sets Each Apart
Zelle, which debuted in 2017, differentiates itself in many key respects. Early Warning Services, LLC owns and operates the system, and its members include seven of the world’s largest banks. As a bonus, the platform might also act as a source of income for financial institutions.
The differences between Zelle and Venmo are summarized in the table below.
| Zelle | Zenmo |
| Zelle transactions are often completed significantly more quickly. | With Venmo, payments can take up to 30 minutes to process. |
| Through Zelle, money can be sent directly from one bank account to another, eliminating a middleman. | The sender’s bank account transfers funds to the Venmo platform, and the recipient’s bank account receives the funds. |
| Zelle is safe since it transfers money across bank accounts. | In order to use Venmo, users must first create an account on the platform, which is independent of their actual bank account. Which neither the FDIC nor the NCUA insures. |
| There is no cost associated with sending money using the Zelle network. | As opposed to Zelle, Venmo’s ‘Instant Transfer’ option charges a flat fee of either 1% or $10. |
Alternate Stock Options for Zelle
Consumer orientation, such as support for many currencies, social integration, and a variety of wallet alternatives, are all features of the best money transfer applications.
The top alternatives to Zelle stock are listed below.
- PayPal
The flagship service of Venmo’s parent firm, PayPal, is a popular alternative to Zelle. It’s not merely a tool to transfer money to friends and family members who have PayPal accounts. A PayPal account is free to open, and once you do, you can obtain a debit card to use with your account.
PayPal is straightforward and easy to use after it has been set up and configured. It accepts several types of payment, including Bitcoin and Venmo, among other financing options. What’s more, if you use PayPal to make a purchase that turns out to be fraudulent, PayPal can aid you in securing a refund.
- Cash App
If you need to send money to a buddy, you can use Cash App, a free mobile payment platform. You can also use the Cash App debit card to shop wherever Visa debit cards are accepted. Cash App’s extra value lies in the fact that it can be used to buy shares as well as Bitcoin. It also provides access to tax filing and preparation resources.
For the time being, Cash App is only accessible to users in the United States and the UK. PayPal is a superior alternative if you need to send money to a foreign country or exchange currencies.
- Venmo
Venmo, a service powered by PayPal, is on the list because it facilitates instantaneous monetary transactions between users. While the peer-to-peer payment software itself is free to use, sending money by credit card will incur a 1.75% fee. For fast cash-out payments to your bank account, Venmo charges a 1.75% fee ($0.25 minimum, $25 maximum).
Your funds are safe in either your Venmo or bank account. If you have an iPhone or Android-powered smartphone, you can send and receive money by signing up and setting a secure password of between eight and twenty characters. Your phone number, email address, and bank account are required for Venmo verification.
- Google Pay
Google Pay is a great alternative to Zelle for peer-to-peer and business transactions if you’re an Android user (but iPhone users may still use it). Every kind of payment can be made using only one app. Considering the wide variety of financial dealings it enables, it is intuitive and somewhat streamlined. If you own a small company or provide freelance services, you can utilize the platform to be paid for your work.
- Apple Cash/Apple Pay
If you have an iPhone, an Apple Watch, or other Apple products, you will find Apple Cash appealing due to the seamless integration of these tools into the well-known interface, which makes making purchases and transferring money to pals quick and simple. Apple Pay is used for in-store and online transactions, while Apple Cash is used for sending money to other iOS users through Messages.
Currently, only citizens of the United States are allowed to use Apple Cash, a peer-to-peer payment service that can be accessed online and via the iPhone/iOS app.
- Meta Messenger
Facebook’s parent firm, Meta, is completely committed to the virtual world. It has also gone into digital payments, competing with Zelle and other services. Users of the Messenger app on Facebook can make monetary transactions inside the app itself. Previously known as Facebook Pay, Meta Pay integrates payments across all of Meta’s services, including Instagram, WhatsApp, Facebook, and Messenger. You can use it to make purchases, pay bills, transfer money to friends and family, and donate to good causes.
- WorldRemit
Transfer times for WorldRemit are measured in minutes. In most cases, money can be sent anywhere on the globe and received within 24 hours. WorldRemit prioritizes safety by using rigorous verification processes, and the Financial Conduct Authority (FCA) has given its stamp of approval. If you accidentally send money to the wrong person by bank transfer or mobile money, WorldRemit may be able to reverse the transaction. If you do detect this, however, please contact WorldRemit immediately.
Is Zelle Safe?
Zelle is typically regarded as a safe, secure method to transmit money. Zelle transactions don’t need you to provide any critical financial information. To further confirm that you are the authorized user of Zelle payments, your bank or credit union should have authentication and monitoring facilities.
Zelle doesn’t have the same payment safeguards that customers have grown to expect from credit cards or debit cards, which normally shield consumers from fraudulent charges. You should only send money using Zelle to individuals you know and trust, such as close relatives, close friends, and the owners of small businesses.
Note: Do not use Zelle to purchase from online retailers or transfer large sums of money to people you don’t know well. And make sure you have the proper cell phone number or email address of the person you wish to pay. This helps guarantee your money will be given to the right individual.
Final Thoughts on Zelle Stock
Zelle gives you the capacity to send and receive money instantly and for free. With a few clicks, you can reimburse friends or pay your favorite hairdresser without ever having to divulge critical financial information. While there are restrictions on how much you can send, the money you transfer will arrive safely and in minutes—a big bonus in the world of P2P payments.
Unfortunately, there is no way to invest in Zelle stock or Early Warning Services. However, JPMorgan Chase, Bank of America, Capital One, BB&T, PNC Bank, U.S. Bank, and Wells Fargo are some of the financial companies that own Early Warning Services and are available for investment.
FAQs
Is it safe to use a money transfer app?
Generally, money transfer applications include sophisticated security protections to secure your money. But remember that if you transfer money to the wrong person, you could never see that money again. Service providers may not be able to recoup lost money. Never transfer money to an unknown person.
Is a smartphone needed for using Zelle?
Even if you don’t have a smartphone, you can still use Zelle to make and receive payments via the online banking website of your bank or credit union, provided it supports the service. However, you won’t be able to use Zelle if your bank doesn’t support it and you don’t have a smartphone to install the software on.
How does Zelle work?
To facilitate instantaneous transfers between bank accounts in the United States, Zelle leverages the ACH payments system. It may take three business days to complete an ACH payment you start from your bank account to a friend’s bank account. With Zelle, being paid takes only a few minutes.
Who owns Zelle?
Early Warning Services owns the Zelle payment system. In 2016, Early Warning Services purchased them.
Can Zelle stock be purchased?
Neither Zelle nor Early Warning Services (which owns Zelle) are publicly traded at this time. However, Early Warning Services is owned by financial firms that you can invest in.
When will Zelle start trading publicly?
Since being acquired by Early Warning Services, Zelle has decided against pursuing an IPO.