Paze vs PayPal – Which one is better for Americans?

When shopping online or in stores, choosing the right payment method can make your purchases go smoother and potentially save you money. PayPal and Paze are two popular digital payment options that many Americans use for everyday shopping.

But how does Paze vs PayPal compare?

PayPal is an established platform that doesn't just handle online purchases, but also lets you send domestic and international money transfers. Paze is a newer digital wallet service backed by major US banks.

For online shopping, both services focus on domestic transactions within the US.

We'll also introduce Wise — your international money transfer alternative. Use Wise to send stress-free transfers to over 140 countries - all at the standard mid-market exchange rate.

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Paze vs PayPal – general overview

PayPal and Paze both let you pay online without typing in your card details every time. However, PayPal has a lot more features than Paze since it's not only focused on shopping.

PayPal connects to your bank account or card. You can shop online and pay in stores with your phone, which is very convenient. You can also send money to people and businesses, both within the US and internationally. PayPal also lets you buy cryptocurrency.¹

Paze is owned by major US banks, such as Bank of America, Chase, and Wells Fargo, among others.² Instead of making a new account, it uses your existing bank login. You can pay online and in some stores where Paze is accepted.

When comparing PayPal vs Paze, PayPal works at more stores and websites. It also works internationally, but charges extra fees when you send money in other currencies.³

Paze only works in the US but connects directly to your bank.

Pros & cons

Paze vs PayPal – fees

When you shop online in the US, both PayPal and Paze are free to use.

PayPal doesn't charge you fees when you pay with your bank account or PayPal balance. Some merchants might add a fee if you use a credit card through PayPal, but that's up to the store.

PayPal gets expensive when you send an international money transfer. You'll pay a 5% fee (capped at 4.99 USD) plus an extra 3% to 4% when PayPal converts your dollars to another currency.³

Before sending a money transfer to another country with PayPal, you may want to compare it with different alternatives to see if you can find a better deal elsewhere.

Paze doesn't work for international shopping or transfers at all, so you won’t pay any fees.

Paze vs PayPal – exchange rates

PayPal charges you extra when you need to convert from USD to another currency. This typically happens when you need to send an international money transfer to your friends and family abroad. For example, you may need to switch from USD to EUR if you're sending money to France.

Instead of using the mid-market exchange rate you see on Google, PayPal charges you an extra 3% to 4% in currency conversion fees.³

For example, if the mid-market exchange rate is 1 USD = 0.75 GBP, PayPal might give you a poor exchange rate of 1 USD = 0.70 GBP. This is annoying on a small transfer, but on a large transfer, these costs on every USD can really add up.

Paze doesn't have this problem because it only works in the US. You can't use Paze to shop internationally, so there are no currency conversion fees to worry about.

Supported countries

PayPal works in 110+ countries and supports almost any currency, and Paze is only available in the US. With Paze, you can't send money internationally or shop at foreign websites.

The catch with PayPal is that you can only send money directly to other people who also have PayPal accounts.⁴

If your recipient doesn't have PayPal, you'll need to use Xoom instead, which has its own fees and rules. However, it also has more delivery options, like cash pickup and bank deposits.⁴

At a glance, PayPal is a much more international option than Paze.

Transfer times

You can't transfer money to other people with Paze. It's only for shopping, not sending money to friends or family, so there are no transfer times to discuss.

PayPal lets you transfer money to other PayPal users, typically within minutes using the app. If you use Xoom to send money internationally, delivery times vary depending on the destination and how the recipient wants to receive the money.

Safety & security

Generally speaking, both PayPal and Paze are safe to use.

PayPal keeps your financial information secure. When you pay someone, they don't see your credit card or bank account numbers. PayPal also offers Purchase Protection. If an item doesn't arrive or isn't as described, PayPal should help you get a full refund.⁴

Paze is backed by major banks like Chase, Bank of America, and Wells Fargo. It works similarly to Zelle and other bank-owned payment services.

Some people have safety concerns about newer payment services, but Paze uses your bank's existing security systems. If you're worried about safety, you can opt out by asking your bank how to disable Paze on your account.

Frequently asked questions

How is Paze different from PayPal?

Paze and PayPal are quite different from each other. Paze is a bank-owned payment service that uses your existing bank login and is designed for shopping in the US. You can't send money transfers with Paze. PayPal is an independent provider that requires its own account and works for shopping, sending money, and international payments. In general, PayPal has more features than Paze.

Are there fees for using Paze?

No, Paze doesn't charge fees for shopping. However, your bank might charge fees depending on how you pay. If you use a credit card through Paze, your bank's normal credit card fees still apply. Since Paze is owned by the banks, they make money through your existing banking relationship rather than charging separate transaction fees.

Why are banks using Paze?

Banks created Paze to compete with PayPal, Apple Pay, and other payment services that were taking customers away from traditional banking. When you use PayPal, the banks don't get as much transaction data or fee revenue. With Paze, banks keep control over the payment process and maintain their relationship with you.

Final verdict: Which provider is better?

For shopping in the US, both PayPal and Paze work well and are usually free. It really just comes down to which service you’re most comfortable with using.

PayPal also allows you to send money to other people, both in the US and internationally. However, it gets expensive with international money transfers due to high fees and poor exchange rates.

In reality, neither service is good for sending money transfers, especially abroad or for large amounts. Paze doesn't have money transfer capabilities at all, and PayPal is expensive.

For money transfers, especially large or international ones, you're better off using a service like Wise.

With Wise, you can send secure and trackable large amount transfers to 140+ countries worldwide with transparent fees and the fair mid-market exchange rate.

Have a look at the main benefits for using Wise to send large transfers:

• Dedicated support for large transfers
• Fast and easy setup with no physical paperwork
• Upfront, transparent fees
• Fully trackable transfers
• Fast transfer times
• Two-factor authentication and real-time notifications

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Sources

1. PayPal - Home
2. Paze - Home
3. PayPal - PayPal Consumer Fees
4. PayPal - Send money internationally

Sources checked 09/10/2025