Paze Checkout Solution Makes Online Shopping Fast and Streamlined for BofA Clients This Holiday Season

Rhea-AI Summary

Bank of America has fully implemented Paze, a streamlined online checkout solution, across all eligible credit and debit cards just in time for the holiday season. The solution features card tokenization for enhanced security and doesn't require manual card entry, passwords, or third-party apps. Newegg, an online electronics retailer, has recently adopted Paze.

Paze is operated by Early Warning Services, , with Bank of America being one of seven founding members. The solution will be available to more than 150 million debit and credit cards at general availability. Merchants benefit from increased checkout conversion and fraud reduction, with no transaction fees for offering Paze.

Positive

• Implementation of secure tokenization technology enhancing transaction security
• No transaction fees for merchants to implement the solution
• Potential for increased checkout conversion rates
• Partnership with major retailer Newegg demonstrates market adoption

Negative

• None.

Insights

Financial Technology Analyst

The launch of Paze represents a strategic move in the competitive digital payments landscape. With 150 million debit and credit cards available at launch, this positions Bank of America strongly against existing solutions like PayPal and Shop Pay. The key differentiator is the elimination of transaction fees for merchants, which could drive rapid adoption and potentially generate significant transaction volume.

The tokenization technology adds a important security layer while streamlining the checkout process, addressing two major pain points in e-commerce: security concerns and cart abandonment due to complex checkout processes. The partnership with Newegg, a major electronics retailer, validates the solution's market potential. The timing of the full rollout during the holiday shopping season maximizes exposure and adoption potential.

Payment Systems Expert

The integration of Paze into Bank of America's ecosystem marks a significant advancement in the bank's digital payment strategy. Being one of seven founding members of Early Warning Services (the company behind Zelle) gives BofA a strong foundation for this initiative. The solution's zero-fee structure for merchants creates a compelling competitive advantage against established players that typically charge 2-3% per transaction.

The focus on reducing checkout friction while enhancing security through tokenization aligns with evolving consumer preferences and regulatory requirements. This could potentially increase BofA's transaction volume and strengthen merchant relationships, creating a new revenue stream through increased card usage and customer loyalty.

CHARLOTTE, N.C., Dec. 6, 2024 /PRNewswire/ -- In time for the holiday season, all eligible Bank of America credit and debit cards are now enabled with Paze^SM, a fast and streamlined online checkout solution. Paze includes card tokenization, so that a cardholder's 16-digit credit or debit card number is not shared with participating online merchants.

"Paze checkout offers real benefits for merchants and consumers," said Rich Clow, head of Innovation and Strategy in Global Payments Solutions at Bank of America. "The new online checkout solution is the latest demonstration of how we innovate to solve real-world problems for our clients."

Since the summer, when Bank of America began rolling out Paze, clients have experienced its convenience, which doesn't require manual entry of card numbers, remembering passwords, or downloading third-party applications.

Cardholders can activate Paze through the bank's mobile or online solutions, or directly through a participating merchant's website at checkout (see Paze merchant directory). Additional information can be found on Bank of America's website.

Merchant clients have appreciated the solution's ability to increase checkout conversion while aiming to reduce fraud, and that there is no transaction fee to offer Paze. Online electronics retailer, Newegg, recently adopted the new checkout solution. 

"We're excited to partner with Bank of America and introduce Paze checkout to enhance the online shopping experience for our customers," said Andrew Choi, Director of Brand and Website Experience, Newegg. "At Newegg, we're dedicated to providing the latest technology to PC enthusiasts, gamers, professionals, and early adopters. Paze checkout allows us to offer a fast, more streamlined checkout process, aligning perfectly with our commitment to innovation and customer satisfaction. Together, we're making it easier than ever for our customers to access the tech and PC hardware they need."

Bank of America is one of the seven founding members of Early Warning Services, LLC, the financial services company behind Paze. EWS works with a network of more than 2,500 financial institutions to increase access to financial services and products and protect financial transactions.

"People across the country enjoy the convenience of online shopping, from groceries to electronics to apparel. Yet too often, they face countless fields to fill out at guest checkout at merchant websites," said Catherine Murchie, head of operations, Paze. "Paze allows customers check out quickly and easily, without having to manually enter card details." 

How Paze works
At checkout:

• Locate the Paze button at online checkout
• Enter an email address when prompted
• Enter the one-time passcode sent to a mobile number for authentication
• Choose the card from the Paze wallet and complete the transaction

Paze
Paze is a reimagined online checkout solution that banks and credit unions offer to consumers and merchants, combining all eligible debit and credit cards into a single wallet and eliminating manual card entry. Solving long-standing challenges in e-commerce, Paze provides an easy experience for consumers and merchants alike.  At general availability, more than 150 million debit and credit cards will be available to consumers for making online purchases. To learn more about Paze, visit www.paze.com. Paze is operated by Early Warning Services, LLC, an innovator in financial and risk management solutions.   

Paze^SM and the Paze^SM related marks are wholly owned by Early Warning Services, LLC and are used herein under license. 

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 58 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

Reporters may contact:
Louise Hennessy, Bank of America
Phone: 1.646.858.6471
louise.hennessy@bofa.com

Early Warning Services, LLC
press@paze.com 

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SOURCE Bank of America Corporation

FAQ

What is Bank of America's (BAC) new Paze checkout solution?

Paze is a streamlined online checkout solution that tokenizes card information, eliminating the need for manual card entry, passwords, or third-party applications for Bank of America cardholders.

When did Bank of America (BAC) roll out Paze checkout?

Bank of America began rolling out Paze in summer 2024, with all eligible credit and debit cards now enabled for the holiday season.

Which retailers are using Bank of America's (BAC) Paze checkout?

Newegg, an online electronics retailer, has recently adopted the Paze checkout solution. A merchant directory is available for viewing all participating retailers.

How does Bank of America's (BAC) Paze checkout work?

Users locate the Paze button at checkout, enter their email, verify with a one-time passcode sent to their mobile number, and select their card from the Paze wallet to complete the transaction.