Is Zelle better than PayPal?

Online payment services are becoming one of the most common ways of making transactions due to their simplicity and high speed. PayPal and Zelle are online payment services, the first one being older and a bit more popular than the second.  There are some differences between these two payment platforms, so we should explore them to be able to answer the question from the title.

Online Payment

What is Zelle?

Zelle is an online payment platform that was founded in 2011 under the name “clearXchange” which was changed to Zelle in 2017. Zelle has much simpler functionalities than PayPal and great peer-to-peer payment possibilities. You can use it through the Zelle app or even your bank’s app if they collaborate. Zelle has a smart way of getting to the market by making partnerships with all major financial institutions and allows users to transfer money from one bank account to another with their mobile device or website.


What Does Zelle Offer in Comparison with PayPal?

  1. No Fee

In terms of fees, Zelle is extremely profitable because it charges no fee for transactions, including sending and receiving money. The only thing you should check is if the bank connected to your Zelle account charges some kind of fee. For the sake of comparison, PayPal charges a certain fee for every type of service it offers.

  1. Transactions of High Speed

All transactions made with Zelle will be completed instantly in only a few minutes. Sometimes, the time of transfer could depend on the bank and take a bit longer. PayPal, however, has a variety of transfer times, from minutes to 5 working days.

  1. Security

When talking about online payments, the question of safety is often raised. Users need to know that their data and personal information will be kept safe. Zelle is a big winner among all online payment services because it is backed up by a bank. Their app is actually embedded into the mobile banking apps of high security, which makes Zelle even more secure than PayPal and other options.

  1. Easy to Use

Zelle is a user-friendly online payment service because it does not even require downloading an additional app. It is embedded into the app of bank, and creating an account has never been easier and quicker. Because of its simplicity and partnership with banks, Zelle wants to target all generations and age groups.

  1. Simple and direct transfers

Zelle can be directly connected to your bank account, or you can connect the account with your debit card which is tied to a US bank account. The recipient of the transaction needs to provide you with their email address or their mobile phone number, which is similar to PayPal. Also, a great thing about Zelle is that it does not have a virtual wallet, so the money goes directly to your bank account. On the other hand, if you wish to transfer money from your PayPal wallet to your bank account, you will have to pay a fee.


Zelle is a great option if you live in the U.S. and wish to have direct and instant transactions tied to your bank account without paying fees. However, if you need to make overseas transactions, you will not be able to do that with Zelle, and you will have to look for an alternative.