Paying a friend back for dinner? Purchasing an item from a buy, sell OR trade page on Facebook? Using a contactless payment method at the grocery store checkout? Various mobile payment services are handy for the above payments. But which one does the job best? Take Apple Pay vs Zelle, for example. What’s the difference between these two mobile payment services? Let’s review both of these options below.
Apple Pay vs Zelle: Side-by-Side Comparison
| Apple Pay | Zelle | |
|---|---|---|
| Parent company | Apple, Inc. | Early Warning Services, LLC |
| Launch date | October 20th, 2014 | June 17th, 2017 |
| Operating system | iOS, watchOS, macOS | iOS, Android |
| User base | 48.7 million (est. 2023) | 67.8 million (est. 2023) |
| Max. stored cards | 8-16 cards | 1 bank account |
| Per transfer limit | $10,000 | Varies, depending on the bank |
| Weekly transfer limit | $20,000 | Varies, depending on the bank |
| Fees | None | None |
Apple Pay vs Zelle: What’s the Difference?
Some things set these two apart, not just the types of accepted payment methods or per-transfer limits. This becomes more obvious when you drill down on their fees and users. Let’s break down these key differences below. After closely comparing and contrasting the two, we’ll have a clearer picture of the best.
Payment Methods
A good starting place in our Apple Pay vs Zelle comparison is knowing which payment methods each service supports. Apple Pay supports anywhere from 8 to 16 unique credit and debit cards per user. (This is in addition to a linked bank account or other financial institution.) Comparatively, Zelle only works with a linked bank account from a supported institution. Without this, Zelle only gives you access to limited features and abilities. Looking at the two side by side, Apple Pay has the advantage.
Transfer Limits
Another big difference between the two service is their transfer limits. Apple Pay has a clear-cut limit on daily and weekly transfers. Users can send up to $10,000 in a single transaction and up to $20,000 total per week. Conversely, Zelle has no set limit to daily or weekly transfers. Instead of making the rules, Zelle leaves this responsibility to the banking institutions. For this reason, how much a person can or cannot send with Zelle will depend entirely on their bank of choice. (Confusing, right?)
Fees
If you often use mobile payment services, you know fees are part of most transactions. The good news is neither Apple Pay nor Zelle charges users up-front fees. Zelle once again leaves this up to the banking and financial institutions. If a supported institution wants to charge a fee, it can do so. While most have opted out of this optional feature, it remains a possibility for some Zelle users.
©LightField Studios/Shutterstock.com
Users
Lastly, and perhaps the most significant of all, is the difference in users (and uses) of Apple Pay vs Zelle. Apple Pay and Apple Cash cover all the bases for Apple users. The former works as a payment method at over two million retailers. The latter allows Apple users to send and receive money peer-to-peer. While its user base is limited to Apple users, it has many applications. Zelle, on the other hand, only allows you to make peer-to-peer transfers. Over 100 million customers can use it, but only about two-thirds have signed up.
The History of Apple Pay
Mobile payment services and providers such as Venmo and PayPal paved the way for peer-to-peer transactions and online payments throughout the early 2010s. However, not everyone embraced these burgeoning services with their financial information. The names just weren’t familiar enough to fully trust. As they struggled to get more users on board, Apple toiled away at their own rival mobile payment service. In 2012, Apple began exploring innovative ways to integrate mobile payments into its product line. By 2014, they had perfected Apple Pay.
Apple Pay was instantly appealing for its ability to safely and securely facilitate payments and purchases between Apple devices. Users could also pay online and in person at qualifying retailers and brands with a touch of a button, regardless of their devices. Apple Pay now operates in over 80 different countries and territories globally.
Today, Apple Pay is trusted by more than 50 million users. Next-level security features, such as Touch ID and Face ID, with super-secure tokenization and encryption technology, the mobile payment service provides unmatched payment protection. With the later addition of Apple Cash and the Apple Card credit card, Apple Pay can now compete with Venmo, PayPal, Cash App, Zelle, and Google Pay.
Recently, Apple introduced Apple Card: an Apple-branded credit card that works with Apple Pay and Apple Cash.
©Primakov/Shutterstock.com
How Zelle Competes
Zelle is strictly reserved for peer-to-peer payments. You won’t be able to use it to check out at the grocery store or the department store like you could with Apple Pay. Some retailers accept Zelle transactions, but they aren’t many. Zelle is almost exclusively used for payments between friends, family, and acquaintances. This fundamental difference is probably the biggest distinction to make between these two.
Zelle launched in 2017. Initially, it was known as clearXchange. At the time, Venmo and Square Cash (now Cash App) were the only legitimate peer-to-peer payment apps. However, neither had the public’s complete trust. Concerns over safety, security, and scammers had many hesitant to send and receive funds with these existing apps. And so, Zelle was born. A group of banks created the peer-to-peer payment service to ensure a safer, more convenient way to send money from bank account to bank account.
A network of banks and credit unions, including Bank of America, JPMorgan Chase, and Wells Fargo, own Zelle. This gives it a potential user base of over 100 million people in the U.S. alone. Should Zelle ever open up to the rest of the world, that number would increase exponentially. It effectively replaces the need to pay someone with physical cash or a card, allowing them to make account-to-account transfers. Zelle remains fee-free and has no limits on how much money someone can send or receive.
Apple Pay vs Zelle: 5 Must-Know Facts
- Apple Pay can seamlessly integrate with many payment terminals because it uses near-field communication (NFC), which many tap-to-pay credit and debit cards use.
- Zelle is owned by Early Warning Services, LCC, a joint venture between some of the largest banks in America, including Bank of America, Wells Fargo, and JPMorgan Chase.
- Apple Pay offers support for a variety of loyalty cards and rewards programs. From Starbucks to Walgreens and many other rewards programs in between, Apple Pay users can earn points for purchases.
- The Zelle app doesn’t offer support for reversals or disputes. Once a payment is sent, it can’t be unsent or challenged. This has resulted in fraudulent transactions and scams over the years.
- Apple Pay is built into Apple’s Wallet app and works alongside your digital concert tickets, boarding passes, IDs, and more.
Apple Pay vs Zelle: Pros and Cons
| Pros of Apple Pay | Cons of Apple Pay |
|---|---|
| Seamless integration across Apple devices | Fewer users than Zelle |
| Includes support for Apple Cash | Limited only to Apple users |
| Super secure with Face ID or Touch ID | Only compatible with qualifying bank accounts |
| Accepted as payment by millions of stores | Reliant on phone battery and service |
| Pros of Zelle | Cons of Zelle |
|---|---|
| More users than Apple Pay | Requires a qualifying bank account to use |
| No limits to how much you can receive | Less online or in-store payment options |
| Transactions are protected by top security | It only works in the U.S. |
| Backed and supported by hundreds of banks | No support for credit cards |
Apple Pay vs Zelle: Which Is Best?
So, which of these mobile payment services is best for you? Which side should you take in the battle between Apple Pay vs Zelle? Well, naming a winner is not so simple. These two rival services stand alone. Apple Pay is reserved for Apple users, whereas Zelle is designated for qualifying bank or credit union members. Someone who qualifies for one might not be eligible for the other. And, while Zelle has more users, Apple Pay is accepted at more stores. Ultimately, we’ll name Zelle the superior peer-to-peer payment service and Apple Pay the outstanding mobile payment service.
The image featured at the top of this post is ©Michael Vi/Shutterstock.com.
