Paze is a relatively new online payment system operated by Early Warning Services, the same bank consortium which manages Zelle. Investors may recall Zelle is a popular and convenient person to person (P2P) domestic money transfer service which may be enabled with a user’s cell number or email that matches their financial institution account information. In 2023 Zelle facilitated 2.9 billion transactions worth over $800 billion for an average transaction value of $275. Similarly, Paze is used by consumers for e-commerce transactions without having to share payment card numbers with the merchant. Both of the above services are accessed by the consumer in their respective bank’s app: no new username or password is required and perhaps more importantly, no payment account information is manually entered. All payment information is encrypted with a token so, in theory, there is nothing to steal. What’s more, there are no transaction fees for the use of Zelle and Paze. Consumer privacy, faster and more secure checkout, and no transaction cost to the merchant equates to a win-win situation for all. Currently, Paze is offered by seven of the largest domestic banks including Bank of America, Capital One, Chase, PNC, Truist, US Bank and Wells Fargo.
