From the zip man page:
-P password
--password password
Use password to encrypt zipfile entries (if any). THIS IS INSECURE! Many multi-user operating systems provide ways
for any user to see the current command line of any other user; even on stand-alone systems there is always the
threat of over-the-shoulder peeking. Storing the plaintext password as part of a command line in an automated script
is even worse. Whenever possible, use the non-echoing, interactive prompt to enter passwords. (And where security
is truly important, use strong encryption such as Pretty Good Privacy instead of the relatively weak standard encryp-
tion provided by zipfile utilities.)
The upshot is that if your zip process takes a while, another user on the system might be able to see the command entered, which would include the password. oops. Presumably this applies to the .7z solution as well.