Zelle Operator Readies Summer Rollout of Paze Digital Wallet

Early Warning Services, operator of the Zelle money transfer system, is piloting a digital wallet called Paze to compete with digital wallets from Big Tech.

Paze already has a waiting list online for banks who want in on the mounting action in digital wallets. EWS, which is owned by a group of banks including JPMorgan Chase, Wells Fargo and Bank of America, is expected to pilot the new digital wallet starting this summer.

As The Wall Street Journal (WSJ) reported, “The banks are trying to compete against the likes of Apple Pay and PayPal at online checkout.” Other banks with an interest in EWS include Capital One Financial Corp., PNC Financial Services Group Inc., U.S. Bancorp, and Truist Financial Co.

Per WSJ, “One of the hardest things about launching new wallets is getting consumers to use them. Many wallets from big companies have failed to gain traction. EWS has said it’s focused on creating an easy way for users to sign up for the wallet.”

Recent PYMNTS research reveals that seven of the 11 countries we studied in tracking global digital transformation increased their adoption of digital wallets for in-store payments.

Across all the countries PYMNTS studied, digital wallets were used for 4% more transactions than in the previous quarter, on average. In Japan, in-store use of digital wallets jumped a stunning 20%, leading all other nations surveyed.

In January, WSJ first broke the news that Paze was in the works, reporting at the time that “One goal of the new service is to compete with third-party wallet operators. … Banks are worried about losing control of their customer relationships. Apple, in particular, poses a big threat. The tech giant has moved further into financial services and is working on a savings account with Goldman Sachs Group Inc. and a buy now, pay later offering.”

Additionally, the banks that collectively own EWS “expect to enable 150 million debit and credit cards for use within the wallet when it rolls out. U.S. consumers who are up-to-date on payments, have used their card online in recent years and have provided an email address and phone number will be eligible.”