Difference Between ZellePay and PayPal

ZellePay and PayPal are both major online payment or cash transaction methods that could be done at our comfort. These transactions might only require a laptop or a phone to carry out the payment.


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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.

ZellePay vs PayPal

The difference between ZellePay and PayPal is that while PayPal has a well-defined and prominently used wallet option which seems to be absent in the case of ZellePay. PayPal’s method of online transaction is an internationally available option to pay the user’s peers, ZellePay is not internationally recognized. It is available only in a few selected places.

ZellePay vs PayPal

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ZellePay was started with a different name in its initial stages to flourish over the years with more people opting for this specific model of online payment.

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 had been one of the oldest existing online transaction forms. It had been acquired and taken over many times since its establishment in the 1990s.

Later on, PayPal had taken over other companies in a way to expand their business reaches and have a flourishing marketplace.

Internationally, PayPal is the most iconic and accepted payment mode by the app being downloaded by users worldwide.

Comparison Table

Parameters of ComparisonZellePayPayPal
Year of Establishment20111998
Partnership with Financial InstitutesYesNo
Can Payment be Made Through Web BrowserNoYes
Details of the Receiver to Be EnteredE-mail ID and mobile numberName, E-mail ID, and mobile number
Wallet OptionNoYes

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 had 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 a customer needs to carry out their transactions, ZellePay does give 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 either via their Zelle app or through 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 first established online payment service that the world saw as a complete unit was 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 the year 2002, it had been taken over by eBay till the year 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 transfer among peers.

Today PayPal has over 320 million users as of 2021 who keep using it for payments to their friends and family and other personal payments.

Online shopping also becomes possible with the help of PayPal becoming a favorite 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 in PayPal. But the banks may charge additional for such transfers.

Main Differences Between ZellePay and PayPal

  1. PayPal had been established in the year 1998 being one of the first online transactions whereas ZellePay had been established in the year 2011 coming up much later than most other online payment means. 
  2. PayPal had been taken over and passed to many companies over at many times, unlike ZellePay which had been owned by a single company with no acquisitions. 
  3. While the payment for PayPal can be done 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 bank account. 
  4. There are no credit card facilities for ZellePay whereas PayPal has credit card payments. 
  5. PayPal has a transactions fee of 3% in credit card payments and an additional 1% fee for fast transactions but for ZellePay such charges don’t apply. 
  1. http://www.journals.linguisticsociety.org/proceedings/index.php/PLSA/article/view/5042
  2. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/ucdbulj16&section=14
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