Zelle is a mobile payment application that allows peer-to-peer (P2P) money transfers, simplifying the process of paying for things and making it easier to move money without handling cash or visiting the bank. It is a type of peer-to-peer (P2P) payment service, similar to other apps like Venmo and Cash App. Zelle is owned by Early Warning Services, a financial technology (fintech) owned by seven major banks: Bank of America, Capital One, JPMorgan Chase, PNC Bank, Truist, U.S. Bank, and Wells Fargo. Heres how Zelle works:

• Enrollment: To enroll with the Zelle app, enter your basic contact information, an email address and U.S. mobile number, and a Visa or Mastercard debit card with a U.S. based account.

• Sending and Receiving Money: You can send, request, or receive money with Zelle. After you’ve enrolled, simply add your recipient’s email address or U.S. mobile number, the amount you’d like to send or request, review and add a memo, and hit “confirm.” In most cases, the money is typically available in minutes. Zelle works by linking to a U.S. checking or savings account and transferring money to another U.S. bank account. The payer and payee do not need to have accounts at the same financial institution, but they do both need to be enrolled with Zelle.

• Advantages: Zelle payments can be much faster than those sent through other P2P apps, appearing in a recipient’s bank account almost instantly with no extra fees. Because the funds never sit in a third-party location, your money is always insured.

• Disadvantages: Users can face difficulties, such as not receiving their funds, if the app or banks experience technical problems. Outages can affect money transfers. You also cannot cancel a payment that’s received by another user, and transfers occur quickly. Users should also be aware of the potential for fraud or theft.

Zelle is a great way to send money to friends and family, even if they bank somewhere different than you do.