Hey there! Have you started using mobile payments yet? Odds seem high you‘ll need to soon, as tap-and-pay smartphone transactions see massive growth industry-wide.
In 2022 alone, worldwide mobile payment volume zoomed up 23% to hit $302 billion!
I want to help you make sense of the two biggest platforms right now – Apple Pay and Zelle – since choosing the right option can save major headaches.
We‘ll explore how Apple Pay and Zelle compare across key categories like:
- Payment types accepted
- Security protections
- Transfer limits and fees
- Use cases and features
- User bases over time
Hopefully by the end, you‘ll grasp the prime differences and can determine which app suits your spending needs best!
Overview of Apple Pay and Zelle
First, let‘s quickly recap what each mobile payment app is at its core:
Apple Pay
- Mobile wallet letting Apple device owners store cards for tap payments
- Works online, in iOS apps and at contactless store terminals
- Secures cards via encryption and tokenization
Zelle
- Peer-to-peer network linked to U.S. bank accounts
- Owned by major retail banks Bank of America, Wells Fargo, etc.
- Lets you quickly send money between accounts
| Platform | Launch Year | 2022 Global Users | Owned By |
|---|---|---|---|
| Apple Pay | 2014 | ~387 million | Apple |
| Zelle | 2017 | 82 million | Bank Consortium |
Now that we‘ve covered the basic outlines, let‘s explore some key contrasts between the two mobile money services…
Payment Types Supported
One major difference rests in the payment sources Apple Pay and Zelle allow:
Apple Pay
Apple Pay lets users securely add Visa, Mastercard, American Express and Discover credit & debit cards within the Wallet app.
You can store between 8 and 12 cards, depending on your iPhone model storage, then simply select one to use when checking out.
The app leverages near field communication (NFC) technology to transmit payment data, the same tech contactless chip cards run on.
Zelle
As a strict peer-to-peer platform, Zelle solely transfers money between linked U.S. checking and savings accounts.
Credit cards lack bank account routing numbers, so they don‘t integrate. And Zelle stays confined to American bank account holders only presently.
However, Zelle participation spans over 1,700 U.S. banks and credit unions, granting access to over 82 million consumers with compatible accounts.
Security: Apple Pay vs. Zelle
Now, let‘s explore each app‘s security protections, arguably the make-or-break factor for any financial platform.
Apple Pay
Your actual credit or debit card numbers never get shared with merchants when using Apple Pay in stores.
Instead, Apple assigns a unique Device Account Number that‘s encrypted and securely stored in the platform‘s dedicated chip. This tokenized number represents your card for transaction purposes.
All payments also require user authentication via Face ID, Touch ID or passcode as a safeguard. And all card data transmissions become fully encrypted.
Apple Pay maintains certified PCI compliance as well, meaning it meets payment card industry security standards.
Zelle
Though not sporting quite the degree of proprietary encryption Apple employs, Zelle benefits enormously from institutional security backing. After all, owners like Bank of America, Wells Fargo and Capital One have a deep interest in preventing financial fraud or data breaches.
Zelle transactions don‘t involve sending sensitive bank account and routing numbers over networks. The platform assigns a unique token for transaction IDs.
Member banks must uphold know your customer (KYC) and anti-money laundering (AML) standards too. Zelle itself monitors account activity for suspicious patterns indicative of phishing scams.
So both apps rightfully earn top marks around security!
Transfer Limits on Apple Pay vs. Zelle
Transactions stay limited on Apple Pay, but Zelle plays by looser rules…
Apple Pay
Apple Pay implements defined transaction and weekly sending caps:
- $10,000 per transaction
- $20,000 total weekly
These limits minimize prospects for money laundering or other shady activity within the app.
Zelle
Since it represents an extension of existing bank account services, Zelle places no overarching transaction or balance limits whatsoever.
But member banks have full discretion based on risk tolerance. Most enable unlimited sends up the account balance. But some conservative smaller banks enforce recipient or monthly caps like:
- $500 per transaction
- $1,500 per week
- $5,000 per month
Checking your bank‘s fine print is wise here!
Common Use Cases
Understanding typical real-life uses proves vital too for deciding between the apps.
Apple Pay
Apple Pay shines through flexibility across so many spending channels, including:
- Tap-and-pay store checkout terminals
- Mobile apps and websites accepting Apple Pay
- Peering money to friends via Apple Cash
- Riding transit networks in supported cities
Basically, anytime you‘d normally break out a credit or debit card, Apple Pay may serve as a quicker and more secure substitute.
Zelle
Zelle focuses squarely on consumer-to-consumer money transfers though, allowing users to seamlessly:
- Pay back a debt to a buddy
- Split the dinner tab
- Send funds as a gift
- Pay contractors, handymen or freelancers
The app best equips people to route payments directly into the bank accounts of other individuals rather than companies.
Apple Pay vs. Zelle Stats
Let‘s check the tape and see how Apple Pay and Zelle adoption and usage stack up over time too:
Apple Pay
| Year | Total Global Transactions | Total Global Users |
|——-|—————–|——————-|
| 2016 | $36 billion | 12 million |
| 2020 | $609 billion | 507 million |
| 2022 | $996 billion | 785 million (est) |
Zelle
| Year | Total U.S. Transactions | Total U.S. Users |
|---|---|---|
| 2018 | $75 billion | 20 million |
| 2021 | $490 billion | 82 million |
| 2022 | $640 billion | 103 million |
The astounding growth trajectories speak for themselves! Both services clearly offer immense value.
Apple Pay provides seamless card payments to over 750 million users now globally across stores, apps, websites and more.
And over 100 million Americans seamlessly route billions in bank account transfers via Zelle in lieu of paper checks or cash.
Which Should You Choose?
So ultimately, should you side with Apple Pay or Zelle?
The honest truth is both provide immense mobile payment convenience at this point for consumers. Picking one depends wholly on matching personal preferences up with the right app feature set.
Apple Pay works wonders for those living their daily lives within the Apple ecosystem of devices, retailers, transit systems and more. Route the vast majority of expenditures right from your mobile wallet!
But iOS abstainers or U.S. debit account holders mainly need to transfer funds to other people should consider Zelle the sensible choice. Know your money lands directly into the desired bank account every time.
At the end of the day, determining whether Apple Pay vs. Zelle finds the right fit hinges on how you specifically exchange money day-to-day right now. Assess your habits closely through that lens, and the path forward should grow nice and clear!
Let me know if any other questions pop up too. Happy to chat mobile payments anytime!
