On Friday, May 2, 2025, Zelle users across the United States faced a significant disruption in their ability to send and receive payments. The outage, which began early in the morning, was attributed to an internal issue at Fiserv, a third-party payment infrastructure provider utilized by many financial institutions. Although Fiserv reported resolving the issue around 1:30 p.m. ET, intermittent problems persisted throughout the day, leaving many users with pending transactions and limited access to their funds.
What Happened?
The outage impacted users attempting to transfer money through various banks, including Bank of America, Ally, and Navy Federal Credit Union. Reports on Down Detector peaked at nearly 1,000 complaints, highlighting the widespread nature of the disruption. Users reported being unable to send money between banks, with some noting issues beginning the previous night.
Fiserv, the payment infrastructure provider at the center of the issue, acknowledged an internal error that caused the disruptions. While the company stated that the problem had been resolved and that they were working through a backlog of transactions, many users continued to experience delays and “payment pending” notifications.
Impact on Users
The outage had a tangible impact on users who rely on Zelle for timely financial transactions. Many reported being unable to pay rent, settle bills, or complete essential transfers. One user expressed frustration, stating, “I feel like my money is suspended and nobody will do anything or take any blame!”.
The disruption also affected users’ trust in digital payment platforms. With Zelle being integrated into many banks’ systems, the outage created confusion, making it appear as though the banks themselves were experiencing issues.
Response from Zelle and Fiserv
Zelle acknowledged the problem and advised affected users to contact their respective banks. The company emphasized that the issue stemmed from a third-party service provider and that they were working diligently with partners to resolve the matter.
Fiserv confirmed that the disruption was due to an internal technical issue and not a cyberattack or malicious activity. The company stated that the problem had been resolved and that they were processing a backlog of transactions.
Broader Implications
The outage has raised concerns about the reliance on third-party providers in the financial industry. Analysts have noted that such vendors operate with minimal regulatory oversight despite their critical role in daily transactions. The incident has prompted calls for stricter resilience standards and greater transparency from service providers during outages.
Investors also responded to the outage, with Fiserv’s stock dipping 3% in after-hours trading following the incident, signaling concern over the company’s role in the disruption.
What Users Can Do
For users still experiencing issues, Zelle recommends contacting their bank directly to inquire about the status of pending transactions. Monitoring account activity and staying informed through official channels can help users navigate the aftermath of the outage.
As digital payment platforms become increasingly integral to daily life, this incident underscores the importance of robust infrastructure and clear communication between service providers and users.
