Zelle is one of the most popular peer-to-peer mobile payment services for sending and receiving money quickly.
It is a digital payment network based in the USA. Zelle is run by a private financial company owned by a group of banks in the United States.
These banks are JP Morgan, US Bank, Chase Bank, Wells Fargo, Capital One, Truist, PNC Bank, and Bank of America.
Zelle was founded in 2016, and it was formerly known as ClearXchange. The Zelle headquarters can be found in Scottsdale, Arizona, United States.
Zelle employs more than a thousand people. Early Warning Services, LLC owns it.
How Zelle Works
Zelle works just like Cash App, Venmo, and Robinhood. You must locate Zelle in your bank’s mobile app to use Zelle.
If your bank does not offer Zelle, you must download the Zelle app yourself.
You can get the app from either the Android Play Store or the Apple App Store. After downloading the app, you will then set it up for use.
To transfer money to someone, all you will need is to have the person’s email address or phone number.
Users can transfer money from their bank accounts to another bank account owned by someone registered for Zelle.
Money transfers can be done through a mobile device or a bank’s website with a partnership with Zelle.
If the recipient already has a Zelle account, the money will be deposited in their bank account in a few minutes.
If they still need to get a Zelle account, they will get an email showing them how to deposit the money into their bank account.
However, all this must be within the USA.
Is Zelle In Canada?
Unfortunately, Zelle is not available in Canada at the moment. People in Canada need help to use Zelle in sending and receiving money.
The P2P platform can only be used by U.S. residents. It cannot be accessed in Canada.
According to the Zelle website, both the sender of the money and the recipient’s bank account must be inside the United States of America.
The phone number to which you use Zelle to send money must also be registered in the United States of America.
6 Zelle in Canada Alternatives In Canada
However, the fact that Zelle is not in Canada does not mean all is lost. You can still get your hands on alternative P2P platforms that work just like Zelle.
Some offer better features than Zelle and can be used within Canada. If you are looking for a P2P money transfer service like Zelle, here are some options for your consideration.
KOHO
This is one of the best alternatives to Zelle in Canada, especially if you want to earn cash back when you make purchases.
A free KOHO account has a reloadable prepaid card and a mobile app. The mobile app can also be used as a budgeting tool and is excellent for people who like to keep a close eye on their expenditures to ensure they spend their money wisely.
Users can also send unlimited money transfers to anyone using their email address, even to people not using KOHO.
Earning interest on your balance is also possible if you add a direct deposit to your KOHO account.
Users can also get access to $100 of their payroll 3 days before it is due, and they will not have to pay a fee for it.
Zelle VS. KOHO
| Features | Zelle | KOHO Canada |
|---|---|---|
| Availability in Canada | Not available in Canada | Available for use in Canada |
| Peer-to-Peer Payments | Yes, but only within the US | Yes, but only within Canada |
| International Transfers | Not available | Not available |
| Physical Card | No | Yes, Prepaid Visa Card |
| Mobile App | Yes, but only for US residents | Yes, available for Canadians |
| Fees | No fees for peer-to-peer payments when linked to bank account | No monthly, annual, or low balance fees |
| Earn Rewards/Cashback | No | Yes, earn cashback on everyday purchases |
| Budgeting/Financial Wellness Features | No | Yes, offers real-time insights and updates |
Wise Money Transfer
This is another popular money transfer platform in Canada, similar to Zelle.
The fantastic thing about Wise is that its services are more than just centered in Canada alone.
You can send money to people outside Canada at low fees and market exchange rates.
There is also a multi-currency account and a debit card which allows users to hold over 53 currencies.
This allows them to spend money easily when they travel abroad. Your first money transfer of up to CAD$800 usually is free when you sign up for a free account.
Zelle VS. Wise Money Transfer
Here’s a comparison table of Zelle and Wise (formerly TransferWise):
| Features | Zelle | Wise Money Transfer |
|---|---|---|
| Availability in Canada | Not available in Canada | Available for use in Canada |
| Peer-to-Peer Payments | Yes, but only within the US | Not available |
| International Transfers | Not available | Available in 70+ countries |
| Physical Card | No | Varies depending on the amount and destination |
| Mobile App | Yes, but only for US residents | Yes, available globally |
| Fees | Yes, business accounts and services available | No fees for peer-to-peer payments when linked to a bank account |
| Business Services | Not supported | Yes, business accounts and services are available |
| Exchange Rates | N/A | Real mid-market exchange rates with no hidden fees |
PayPal
PayPal is well known worldwide, so there is nowhere it cannot be available in Canada.
If you have tried using Venmo but found out it was unavailable, you should smile because you can use PayPal, and PayPal is the owner of Venmo (if you cannot get the kid, get the dad).
PayPal even competes with Zelle in the USA, and although its services are not free, sending money to your friends and family in Canada as a gift will be done free of charge.
There is, however, a fee you pay when you send money for business purposes or when you send money to other countries.
Zelle VS. Paypal
| Features | Zelle | PayPal Canada |
|---|---|---|
| Availability in Canada | Not available in Canada | Available for use in Canada |
| Peer-to-Peer Payments | Yes, but only within the US | Yes, worldwide |
| International Transfers | Not available | Available worldwide |
| Physical Card | No | Available (PayPal Cash Card, not available in Canada) |
| Mobile App | Yes, but only for US residents | Yes, available globally |
| Fees | No fees for peer-to-peer payments when linked to a bank account | Free for payments within Canada, fees apply for international transfers and some services |
| Business Services | Not supported | Available, including payment processing and invoicing |
| Purchase Protection | Not mentioned | Available on eligible purchases |
While Zelle and PayPal offer peer-to-peer payments, Zelle is limited to the US and doesn’t support international transactions.
Stack
Although only some of that is popular in Canada, Stack is another platform that is an excellent alternative to Zelle in Canada.
With the Stack MasterCard and app, users can save significantly on bank fees. Getting a Stack account is free if you spend at least $350 monthly.
The Stack Mastercard is reloadable and can be used to make payments anywhere MasterCard is accepted.
Users also get cash back when they are any of the 140 retailers who are in partnership with Stack. Stack-to-stack transfers are easy and fast, and they are also free.
They are great for sending money between you and your family and friends.
Stack also offers users early payroll when they link their Stack to their direct deposits.
Stack waives the foreign exchange currency fees outside Canada if the users meet the specified requirements.
Zelle VS. Stack
| Features | Zelle | STACK Canada |
|---|---|---|
| Availability in Canada | Not available in Canada | Available for use in Canada |
| Peer-to-Peer Payments | Yes, but only within the US | Yes, but only within Canada |
| International Transfers | Not available | Not available |
| Physical Card | No | Yes, STACK Prepaid Mastercard |
| Mobile App | Yes, but only for US residents | Yes, available for Canadians |
| Fees | No fees for peer-to-peer payments when linked to bank account | No monthly, annual, or low balance fees |
| Earn Rewards/Cashback | No | Yes, earn cashback, rewards, and discounts |
| Budgeting/Financial Wellness Features | No | Yes, offers real-time insights, savings goals, and security features |
Zelle and STACK both provide peer-to-peer payment services but in different regions. Zelle operates in the U.S. and is connected to various U.S. banking institutions, while STACK is a Canadian-based digital banking platform that offers a prepaid card, cashback, and financial management features.
Interact eTransfer
This is yet another great alternative to Zelle in Canada. This platform is usually used when you send money from your bank account to someone in Canada.
Interact eTransfer is offered by lots of credit unions and banks in Canada.
Your account package will determine whether you will pay any fee when transferring money.
Zelle VS. Interact Transfer
| Features | Zelle | Interac e-Transfer |
|---|---|---|
| Availability | U.S residents only | Available for use in Canada |
| Peer-to-Peer Payments | Yes, within the US | Yes, within Canada |
| International Transfers | Not available | Not available |
| Physical Card | No | No |
| Mobile App | Yes, but only for US residents | App availability depends on the financial institution (FI) |
| Fees | No fees for peer-to-peer transactions when linked to a bank account | Usually free or subject to fees, depending on the FI |
| Security | Must have a bank account with a participating FI | Highly secure and generally non-refundable |
| Transfer Speed | Generally within minutes | Instant to 30 minutes (up to 30 hours) |
| Connection to Bank | Must have bank account with a participating FI | Must have a bank account with a participating FI |
Wealthsimple Cash Card
Wealthsimple is quite popular in Canada, making it a great alternative to Zelle in Canada.
The Wealthsimple cash card is an outstanding P2P payment that works similarly to Zelle and Cash App. It is the direct replica of Zelle in Canada and is worth trying.
Zelle VS. Wealthsimple Cash Card
| Features | Zelle | Wealthsimple Cash Card |
|---|---|---|
| Availability | U.S residents only | Available for use in Canada |
| Peer-to-Peer Payments | Yes, within the US | Yes, but only within Canada |
| International Transfers | Not available | Not available |
| Physical Card | No | Yes |
| Mobile App | Yes, but only for US residents | Yes, available for Canadian residents |
| Fees | No fees for peer-to-peer transactions when linked to bank account | No fees |
| Earn Rewards/Cashback | No | Yes, “Wealthsimple Cash Rewards” |
| Transfer Speed | Generally within minutes | Instant |
| Connection to Bank | Must have a bank account with a participating FI | Connects to existing Wealthsimple account |
Frequently Asked Questions
Zelle can only be used in Canada at a later time. It is only available in the USA. However, this article shows that some great alternatives to Zelle can be used easily in Canada.
No. T.D. Bank does not work with Zelle inside Canada. However, the American branch of the bank supports Zelle in the USA.
As we have seen in this article, some of the best alternatives to Zelle in Canada are PayPal, Wealthsimple, and KOHO,
Conclusion
Zelle is a great P2P platform for sending money to family and friends. However, the platform cannot be accessed in Canada.
People looking for a money transfer system that works as fast and efficiently as Zelle can try out the alternatives in this article today.
These are all available in Canada and have great features and benefits.
