Paze vs Zelle. Help me understand the difference….

[Beancounter]

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/biggest-us-banks-gearing-up-for-paze-digital-wallet-marketing-campaign-82239264

I received an email from credit card company JPMorgan Chase about an upcoming new feature they’re going to be implementing called Paze.  After reading the article in the link above I’m still not sure I understand the benefits of this new offering.  Can someone explain to me in layman’s terms how this works and how it’s different from a regular credit card transaction?  

[Colton]

Both Paze and Zelle are operated by the same company (Early Warning Systems LLC) which is a joint venture owned by some of the biggest banks.  
 

Zelle is for peer-to-peer payments.  It is connected to your bank account and money is withdrawn / deposited immediately.  

Paze is for online shopping.  It will allow you to check out on a retail website.  Instead of entering your card number on the retailer’s website, you can click a button that will take you to Paze and Paze will process the transaction without sharing your card number with the merchant.  This means if the retailer is hacked, your card number won’t be in their system.  This is similar to how current websites let you pay with Apple Pay or PayPal.  
 

[Beancounter]

Thanks for explaining that to me. It makes sense to me now.  I don’t use Apple Pay or PayPal so wasn’t aware of how those systems worked. I do use Zelle periodically and like how that works.   

[Colton]

Essentially Zelle and Paze are ways for the big banks to take out the middle men (mainly PayPal, Square, Stripe) who take a bit of the processing fees.