Chase is rolling out a new service called Paze for cardholders.
They claim to add security not sharing the actual card numbers with online merchants.
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This sounds like âPayPal, but owned by Chase Zelleâ
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The thing that call my attention is that this is an automatic service and you have to opt out if you donât want to be part of.
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I will never get over how terrible mastercards/visa online payment system and their crazy 3D âsecureâ. I use it often as example how to not secure things and make overcomplicated solutions that arenât actually that secure.
It always amazed me that banks in most countries didnât build a collective online payment platform like Ideal in Netherlands. Now this Paze still seems to be using your credit card number, I guess they will never learn.
All in all yet another ugly patch on a flawed system.
This seems to be essentially the same as iDEAL.
I dont quite agree. This still relies on creditcards and their numbers. But i get where you coming from it does look more like ideal than before.
Iâm not sure where youâre seeing that. With Paze the point is that you log in with your bank accountâs email/credentials and select your credit account, instead of inputting your credit card number.
As far as this being an automatic system⌠Itâs kind of similar to Zelle in that the service is owned/operated by your bank anyways, and your bank already has your details, so I donât really think it matters to existing account holders.
In fact, if this allows banks to cut out Visa and Mastercard acting as middlemen for transactions, it could be a pretty positive change.
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I donât think anyone can come up with a good alt to apple pay.
Would agree but it seems it doesnât do that.
Well, youâd have to choose a card in the same sense that you have to choose an account to charge with iDEAL, Paze has to know what money you want to spend.
I dont think that that is the same. If you use the credit card number you are still relying on that system, no?
I get the experience is more the same. The underlying infra still seems very different to me.
As far as I can tell, Paze does not cut Visa/Mastercard out of the transaction flow. It primarily cuts out PayPal or Apple Pay. Apple Pay is reported to charge banks 0.15% of each Apple Pay transaction.
https://www.wsj.com/articles/apple-pay-fees-vex-credit-card-issuers-11633449317
https://www.barrons.com/articles/apple-google-digital-wallet-bank-regulation-cbd872cf
Do they have bigger ambitions with Paze to support bank transfers and other methods? Who knows, but they are only supporting credit/debit at this time.
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