Yes, you can use TZe tapes with this printer. (For a list of printers compatible with TZe tapes, refer to "Related models" at the end of this page.)
TZe tapes are more environmentally friendly: TZe tape cassettes use less plastic than those of TZ tapes.

For more information about TZ tapes and TZe tapes, see "Can my printer use TZ/TZe tapes?".