Zelle, the peer-to-peer payment network, has expanded its presence significantly, adding about 337 small banks and credit unions in 2025. This increase brought the total number of financial institutions using Zelle to approximately 2,537. Early Warning Services (EWS), the parent company, highlighted that most of the new additions have less than $10 billion in assets, indicating a shift towards smaller, rural financial institutions that often serve underserved communities. EWS has formed partnerships to facilitate this growth. One key collaboration is with Velera, a credit union services company that focuses on minority customers. Another partnership with Alacriti aims to integrate Zelle into the existing infrastructure of community banks and credit unions. Zelle's General Manager, Denise Leonhard, noted the differing technological needs between rural credit unions and larger metropolitan banks, emphasizing a tailored approach to deployment. Despite these expansions, Zelle still only connects with about 25% of the 8,710 federally insured financial institutions in the U.S. While major banks like JPMorgan Chase and Bank of America have adopted Zelle, skepticism remains among industry experts regarding whether small banks would engage with the network, primarily due to its high fees. However, joining Zelle presents an opportunity for these smaller banks to attract new customers, which could offset the costs of participation.