ZellePay and PayPal are both major online payment or cash transaction methods that can be done at our comfort. These transactions might only require a laptop or a phone to carry out the payment.
With the click of a button and necessary bank details added to the phone along with the mobile number, money can be transferred without much hassle.
Key Takeaways
- ZellePay is a bank-based service offering instant person-to-person transfers, while PayPal is an online platform for sending and receiving money.
- ZellePay transactions are free, while PayPal may charge fees for certain transactions.
- PayPal offers buyer protection and dispute resolution, whereas ZellePay does not.
ZellePay vs PayPal
ZellePay is a peer-to-peer payment platform used to send money directly to another person’s bank account using their email address or phone number. PayPal is also a peer-to-peer payment platform, but it has a much broader reach and is used by people and businesses around the world.
ZellePay started with a different name in its initial stages to flourish over the years with more people opting for this specific online payment model.
More commonly used by students or for transactions to be done from peer to peer, this seems to be the easiest mode. It has a business expanding strategy of having a partnership with other financial business units.
PayPal is one of the oldest existing online transaction forms. It has been acquired and taken over many times since its establishment in the 1990s.
Later on, PayPal took over other companies in a way to expand their business reach and have a flourishing marketplace.
Internationally, PayPal is the most iconic and accepted payment mode, the app being downloaded by users worldwide.
Comparison Table
| Parameters of Comparison | ZellePay | PayPal |
|---|---|---|
| Year of Establishment | 2011 | 1998 |
| Partnership with Financial Institutes | Yes | No |
| Can Payment be Made Through Web Browser | No | Yes |
| Details of the Receiver to Be Entered | E-mail ID and mobile number | Name, E-mail ID, and mobile number |
| Wallet Option | No | Yes |
What is ZellePay?
ZellePay came into its establishment in 2011. At the time of its newly announced public release, it had been called clearXchange.
After much speculation and during an up gradation in 2017, the company board decided to change the name into something more pronounceable.
The new name came about to be ZellePay.
Unlike most other online money transaction apps and sites, ZellePay spent a lot of time creating contacts with other financial institutions.
These contacts eventually turned into partnerships with those institutes, which were majorly from the US.
With the help from other financial resources and having acquired partnerships with them, ZellePay has been able to expand its reach.
They started connecting their payment modes to the apps provided by such financial leads, thereby increasing customer recognition.
Though it has all the surety and safety requirements that customers need to carry out their transactions, ZellePay gives customers a few safety precautions.
While using ZellePay from other apps, customers are asked to carry out transactions only with people they know and are confident about.
A customer can avail ZellePay services via their Zelle app or the customer’s bank-linked bank app.
This can differ from one bank to another.
International payment is not possible with ZellePay. Their transactions are limited to a specific area.
Each area covered by ZellePay can only allow transactions within.
What is PayPal?
The world saw the first established online payment service as a complete unit PayPal.
It was established in the year 1998. It was introduced as a peer-to-peer online payment mode.
It had been acquired and passed on to many other companies over time.
After its initial establishment in 2002, it was taken over by eBay in 2015.
It was then taken over by Xoom in 2015 after eBay sold it to them.
Xoom itself had been an online money transaction company and had gained monetary profit after the acquisition of PayPal.
Up until this day, PayPal is the most popularly used and downloaded app in its specific field.
The services provided by PayPal, such as PayPal Me, create a safe space for money transfers among peers.
Today, PayPal has over 320 million users as of 2021 who keep using it for payments to their friends, family, and other personal payments.
Online shopping also becomes possible with the help of PayPal, becoming a favourite for regular online shoppers.
The only thing the users need is either a laptop or a phone that has a proper internet connection.
The payments are made via the app of PayPal or even through a web browser.
Both debit and credit cards are accepted variations of payment needs, so can a PayPal account be used.
There is a 3% charge charged by PayPal on credit card transactions, and an additional 1% has to be paid if the user chooses to have a fast transfer of cash.
International or cross-country payments and transactions are possible via PayPal. But the banks may charge additional for such transfers.
Main Differences Between ZellePay and PayPal
- PayPal was established in the year 1998 being one of the first online transactions, whereas ZellePay was established in the year 2011, coming up much later than most other online payment means.
- PayPal had been taken over and passed to many companies many times, unlike ZellePay, which had been owned by a single company with no acquisitions.
- While the payment for PayPal can be made through the web browser if the app isn’t downloaded, this can’t be said for ZellePay, for which all transactions are made through the app alone or a bank account.
- There are no credit card facilities for ZellePay, whereas PayPal has credit card payments.
- PayPal has a transaction fee of 3% for credit card payments and an additional 1% fee for fast transactions, but for ZellePay, such charges don’t apply.
- http://www.journals.linguisticsociety.org/proceedings/index.php/PLSA/article/view/5042
- https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/ucdbulj16§ion=14
Last Updated : 13 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
ZellePay is a great way to move money quickly, without any fees. That’s something PayPal should look into
Yes, ZellePay is free to use. With PayPal, it always feels like you are losing money due to fees!
I had no idea these two services were so different. Thanks for the detailed overview.
The detailed comparison table helps in understanding the key differences between ZellePay and PayPal.
Okay, but does anyone remember when PayPal first came out and it *wasn’t* owned by a conglomerate?
The article provides readers with a detailed comparison between two of the most popular online payment platforms of today.
The historical background and evolution of both ZellePay and PayPal provide valuable insights into their growth and popularity.
I found ZellePay quite intriguing, especially their business strategy of forming partnerships with financial institutions.
But PayPal’s offering of buyer protection and dispute resolution is what sets it apart from the rest.
Yes, ZellePay’s business expansion strategy is quite innovative.
ZellePay sounds behind the times with no credit card payments, and only in country transactions.
I can’t believe how much PayPal has been acquired and taken over over the years. They’re like the Madonna of online transactions.
I’ve been using PayPal for years. I didn’t know ZellePay was free to use though. That’s a huge plus!
It’s interesting how technological advancements in the financial sector have given rise to such innovative online payment platforms.
ZellePay’s strict safety measures and limitations, while a drawback in some aspects, are commendable for ensuring secure transactions.
Yes, it’s essential to consider both the advantages and limitations of each payment platform.
I still prefer the versatility of PayPal, especially for international transactions and multiple payment options.