Zelle is a peer-to-peer (P2P) mobile payment platform for sending and receiving money fast within minutes. Its alternatives in the U.S. include Cash App, Venmo, Wise, and PayPal.
Like the Cash App, Zelle allows you to transfer funds to a recipient using their email address or phone number.
Is Zelle available in Canada? What alternative payment tools can you use to achieve almost instant free money transfers?
Is Zelle Available in Canada
No. Zelle is not currently available in Canada. According to its website, to use the Zelle payment platform, “the sender and recipient’s bank account must be based in the U.S.”
When sending money via Zelle to a mobile phone number, it must be registered in the U.S.
Best Zelle Alternatives in Canada
These Zelle alternatives make it easy to send money to friends and family. Many are also free of charge.
1. KOHO
KOHO is a solid Zelle alternative, especially if you want to earn cash back on every purchase.
A free KOHO account includes a reloadable prepaid card and a mobile app that doubles as a budgeting tool and savings account. The company also has paid offerings.
Its top features are:
Cash back Card: Use the KOHO prepaid Mastercard to pay for purchases online or in-store and earn up to 5% cash back. Even better, you can reload the card using your bank account anytime.
Free money transfers: You can send unlimited transfers to anyone using their email address, including KOHO users and non-users.
CDIC protection: The funds in your KOHO account are protected against insolvency by the CDIC.
Welcome bonus: Get a $20 sign up bonus when you sign up and complete your first purchase.
2. Wise
Wise is one of the most popular global money transfer apps and a solid Zelle alternative.
Its use is not limited to Canada, and you can send money to 80+ countries with a low fee and the best mid-market exchange rates.
Wise also offers a multi-currency account and debit card that allow you to hold up to 53 currencies and easily spend abroad in 200 countries.
You can get started here with a free account and send up to $800 CAD free when you make your first transfer.
3. PayPal
While PayPal is not completely free, it is considered a top Zelle competitor in Canada and the United States.
Sending money to friends within Canada (as a gift) is free; however, you pay a fee to send money for business purposes or internationally.
How Zelle Works
Zelle is owned by Early Warning Services, LLC, a financial technology company owned by Bank of America, Capital One, JP Morgan Chase, PNC Bank, Wells Fargo, Truist, and U.S. Bank.
Sending money using Zelle is easy.
To start, find Zelle in the mobile app of your bank account. If your bank does not offer Zelle, you can download the Zelle app and use that instead.
Enter the email or U.S. mobile phone number of the recipient and the amount you want to send.
If the recipient has a Zelle account, the funds will be deposited in their bank account within minutes. If not, they will receive an email with instructions on how to deposit their funds.
Some Canadian banks operating in the U.S. support Zelle on their U.S. platforms, including TD Bank.
This article is a condensed version of the original guide titled "Is Zelle in Canada? 5 Best Zelle Alternatives in 2024" written by Enoch Omololu and published on Savvy New Canadians.
