Zelle saw a significant surge in transactions last year, with consumers and small businesses conducting 2.9 billion transactions, totaling $806 billion—a 28% increase from the previous year.
According to Early Warning, the network operator for Zelle, fully 120 million customers and businesses used the Zelle network in 2023. Small business, in particular, experienced a substantial boost, receiving 217 million payments through Zelle, amounting to more than $100 billion. This uptick can be attributed largely to the growing adoption of Zelle for various organized payments, including employee salaries, vendor invoices and office expenses.
“Powered by our unmatched reach through thousands of participating banks and credit unions – and enabled by our continued efforts to enhance security and educate consumers – Zelle soared to new heights in 2023,” said Cam Fowler, CEO of Early Warning in a prepared statement. “As the digital payments growth engine for the U.S. financial services industry, the Zelle Network remains committed to providing consumers and small businesses a way to quickly and safely pay people they know and trust.”
Zelle’s Goal to Make Payments More Secure
Zelle has prioritized enhancing payments security under the oversight of federal financial regulatory agencies. As a result, reported instances of fraud or scams accounted for less than one-tenth of 1% of transactions last year—a figure that continues to decline as Zelle implements more sophisticated security measures.
To reinforce security protocols, Zelle is continuing to remind users throughout the payment process to only transact with trusted individuals. Notable, Early Warning issued over 700 million cautionary alerts to users before initiating payments, highlighting its commitment to proactive fraud prevention.
Moving forward, Zelle plans to further emphasize the importance of vigilance, collaborating with organizations like the Better Business Bureau and the National Council on Aging to better educate consumers. Additionally, Zelle will be equipping banks and credit unions with educational materials that they can leverage to empower their customers with better security practices.