How Does Zelle Make Money

Zelle is a digital payments platform that allows users to send and receive money quickly and easily. The platform was created in 2017 by a group of major banks, including Bank of America, Wells Fargo, and JPMorgan Chase, and has since become a popular way for people to transfer funds between friends and family members.

While Zelle is a convenient and user-friendly platform, many people are curious about how the company makes money.

In this blog post, we’ll take a closer look at Zelle’s business model and explore the different ways the company generates revenue.

3 Ways Zelle Makes Money

Here are the different way how Zelle makes money

  1. Transaction Fees

One of the primary ways that Zelle makes money is through transaction fees. Whenever a user sends money using the platform, Zelle charges a small fee to the sender’s bank. This fee is typically a percentage of the total transaction amount, and can vary depending on the specific bank that the sender is using.

While these fees may seem small, they can add up quickly over time. According to some estimates, Zelle generated over $1 billion in transaction fees in 2020 alone. As the platform continues to grow in popularity, it’s likely that these fees will become an even more significant source of revenue for the company.

  1. Partnerships and Advertising

Another way that Zelle makes money is through partnerships with other companies. For example, the platform has partnered with a number of major retailers and service providers, such as Lyft and Pizza Hut, to offer users exclusive deals and discounts when they pay using Zelle.

In addition, Zelle also generates revenue through advertising. The company has a large user base and a wealth of data on consumer spending habits, which makes it an attractive target for advertisers looking to reach a specific audience. By partnering with brands and promoting their products to Zelle users, the company can generate additional revenue streams beyond just transaction fees.

  1. Interest Income

Finally, Zelle also generates revenue through interest income. Whenever users send money using the platform, the funds are held in a secure account until they are received by the recipient. During this time, the funds may earn interest, which is then collected by Zelle and added to the company’s bottom line.

While interest income may not be as significant as transaction fees or partnerships, it can still provide a meaningful source of revenue for the company. Additionally, as Zelle continues to grow and expand its user base, the amount of interest income generated by the platform is likely to increase as well.

Zelle’s Unique Position in the Payments Industry

Zelle’s business model is unique in the payments industry, as it is owned by a consortium of major banks rather than a standalone company. This ownership structure gives Zelle several advantages over its competitors, including access to a large customer base and the ability to integrate seamlessly with existing banking apps and platforms.

In addition, Zelle’s partnership with major banks also helps to ensure the security and reliability of the platform. Customers can trust that their funds are safe when using Zelle, as the platform is backed by the same financial institutions that they already trust with their money.

Zelle’s Growth and Expansion

Since its launch in 2017, Zelle has experienced significant growth and expansion. As of 2021, the platform has over 1,000 participating banks and credit unions, and is available to over 320 million consumers in the United States.

One of the factors driving this growth has been Zelle’s focus on simplicity and ease of use. The platform is designed to be user-friendly and intuitive, with features like instant transfers and the ability to split payments with friends and family members. This ease of use has made Zelle a popular choice for consumers looking for a fast and convenient way to send money.

Looking to the future, Zelle is expected to continue expanding its partnerships and exploring new revenue streams. The company has already announced plans to integrate with popular messaging apps like WhatsApp and iMessage, which could further increase its reach and visibility among consumers.


In conclusion, Zelle makes money through a variety of different revenue streams, including transaction fees, partnerships, advertising, and interest income. While the company may face competition from other digital payments platforms in the future, its strong relationships with major banks and retailers, combined with its user-friendly interface and wide range of features, make it a force to be reckoned with in the payments industry.

Overall, Zelle’s business model is built around generating revenue from transaction fees, partnerships and advertising, and interest income. While the company faces competition from other digital payments platforms, its unique ownership structure and focus on simplicity and ease of use have helped it to carve out