Paze: big banks take another swing at digital wallets
Jun 7, 23, 4:59 pm
#1
Original Poster
Join Date: Oct 2004
Location: Indianapolis area
Programs: Marriott Lifetime Titanium
Posts: 391
Paze: big banks take another swing at digital wallets
Looks like the big banks are taking another swing at producing a digital wallet. I got an updated account agreement from Wells Fargo today referring to a new digital wallet called "Paze".
This is by the same bank owned company that does Zelle. https://www.paze.com/
Not sure why they think we need a new solution to a non existent problem.
https://www.pymnts.com/mobile-wallet...igital-wallet/
This is by the same bank owned company that does Zelle. https://www.paze.com/
Not sure why they think we need a new solution to a non existent problem.
https://www.pymnts.com/mobile-wallet...igital-wallet/
Jun 8, 23, 12:47 pm
#2
FlyerTalk Evangelist
Join Date: Jan 2014
Location: San Diego, CA
Programs: GE, Marriott Platinum
Posts: 15,361
Their problem of them needing to pay Apple, etc. every time someone taps their phone is definitely real. Whether it really matters for the average consumer is another question, though.
Last edited by tmiw; Jun 8, 23 at 2:12 pm Reason: misformatted text
Jun 8, 23, 2:06 pm
#3
Join Date: Dec 2021
Location: CMH
Posts: 209
I think they would need to offer something in exchange for switching over to Paze from Apple/Android Pay, eg: 1% cashback or some other benefit. Otherwise there is no real incentive for the consumer to not just continue using what they have now.
Jun 8, 23, 4:11 pm
#4
Join Date: Oct 2007
Programs: AA, WN, UA, Bonvoy, Hertz
Posts: 2,474
This is the Chase website: chase.com/paze
This seems to be about bypassing the traditional card networks. Chase is not including some cobrands (Amazon) and Mastercard (which is not on their ChaseNet infrastructure). Although other banks are more inclusive. It will be a token like PayPal, so no card numbers going to the merchant.
PayPal has been pushing their reward rebate program to compete, so in this case the consumer wins in the active battle.
I can't find the promotion yet for merchants for deeply discounted discount/merchant fee. That seems to be a must. Then, the coupon codes start coming for customers. If this is about the banks just keeping more of the discount fee and not sharing with digital wallets, I don't see the consumer adoption. If this allows banks to offer BNPL at time of purchase, probably a new revenue stream for them.
I don't known why square/stripe/adyan would offer integration to the API. Let's see what happens.
This seems to be about bypassing the traditional card networks. Chase is not including some cobrands (Amazon) and Mastercard (which is not on their ChaseNet infrastructure). Although other banks are more inclusive. It will be a token like PayPal, so no card numbers going to the merchant.
PayPal has been pushing their reward rebate program to compete, so in this case the consumer wins in the active battle.
I can't find the promotion yet for merchants for deeply discounted discount/merchant fee. That seems to be a must. Then, the coupon codes start coming for customers. If this is about the banks just keeping more of the discount fee and not sharing with digital wallets, I don't see the consumer adoption. If this allows banks to offer BNPL at time of purchase, probably a new revenue stream for them.
I don't known why square/stripe/adyan would offer integration to the API. Let's see what happens.
Jul 8, 23, 11:18 pm
#5
Join Date: Jul 2023
Location: Dallas, TX
Posts: 18
On a side note, I have never truly felt safe when using Apple Wallet, and here are my concerns,
1. What information does Apple get when I pay with Apple Wallet? Obviously, a card number, but do they also save and store information about the transaction?
2. Does paying with Apple Pay allow me to bypass Visa/Mastercard network? I mean that if Apple establishes the connection between my bank and the merchant's bank, it avoids the need to use the Visa/Mastercard network. Which efficiently means that they are becoming a paying network. If not, then Apple is just another middleman here?
1. What information does Apple get when I pay with Apple Wallet? Obviously, a card number, but do they also save and store information about the transaction?
2. Does paying with Apple Pay allow me to bypass Visa/Mastercard network? I mean that if Apple establishes the connection between my bank and the merchant's bank, it avoids the need to use the Visa/Mastercard network. Which efficiently means that they are becoming a paying network. If not, then Apple is just another middleman here?
Jul 8, 23, 11:38 pm
#6
Join Date: Oct 2007
Programs: AA, WN, UA, Bonvoy, Hertz
Posts: 2,474
On the first point, Apple does get the same transaction level data you see on your transaction statements, but in some categories, it gets more like to/from for flights, hotel stay dates, etc. But item level data is not common although there are thoughts that some issuers like AmEx can get transaction level data, but only if the POS is setup as such.
On the second item, the big four card networks will readily admit that they were forced to create partnerships with Apple and pay a fee on every transaction. Perhaps fraud is lower than on regular card transactions, but Apple is not bypassing anything except for those who are using the Apple Card at Apple direct e-commerce or stores.
On the second item, the big four card networks will readily admit that they were forced to create partnerships with Apple and pay a fee on every transaction. Perhaps fraud is lower than on regular card transactions, but Apple is not bypassing anything except for those who are using the Apple Card at Apple direct e-commerce or stores.
Jul 9, 23, 10:16 am
#7
Join Date: Jul 2023
Location: Dallas, TX
Posts: 18
On the first point, Apple does get the same transaction level data you see on your transaction statements, but in some categories, it gets more like to/from for flights, hotel stay dates, etc. But item level data is not common although there are thoughts that some issuers like AmEx can get transaction level data, but only if the POS is setup as such.
On the second item, the big four card networks will readily admit that they were forced to create partnerships with Apple and pay a fee on every transaction. Perhaps fraud is lower than on regular card transactions, but Apple is not bypassing anything except for those who are using the Apple Card at Apple direct e-commerce or stores.
On the second item, the big four card networks will readily admit that they were forced to create partnerships with Apple and pay a fee on every transaction. Perhaps fraud is lower than on regular card transactions, but Apple is not bypassing anything except for those who are using the Apple Card at Apple direct e-commerce or stores.
