Zelle

Early Warning Service's peer-to-peer payments network saw payment volume growth accelerate in the first six months of 2025, buoyed once again by small-business payments.

New York Attorney General Letitia James alleges that Zelle's parent company, Early Warning Services, failed to adopt basic safeguards to combat fraud. The Consumer Financial Protection Bureau dismissed a similar lawsuit in March without an explanation.

Like its sibling app Zelle, Early Warning's digital wallet is trying to build a brand that can attract new members. Star One Credit Union is an early win.

Increasing community bank and credit union adoption is a key pillar of the P2P payment network's strategy as it looks to increase its network effect and penetrate into small-business payments.

The bank-owned payments app saw the number of total transactions jump 24% compared with 2023. Small business transactions increased 32%.

The use cases are growing and banks don't want to risk being left behind, especially with younger customers who are more open to the technology.

As regulators and Congress push for stronger consumer protections as losses mount, payment experts say there are steps companies should be taking now to respond.

Depending on the data, Zelle can be seen either as a leading target for fraudsters and scammers, or better than average at stopping these criminals.

The new bank-led digital wallet is signing up financial institutions, but payment experts say broadening its merchant base and reaching consumers will be an uphill climb.

The bank doubled down on promises to use legal action if the Consumer Financial Protection Bureau brings an enforcement action against it related to fraud on the Zelle platform, saying in a statement that it would "not hesitate to seek assistance from courts."