According to the latest report from the Wall Street Journal, big U.S. banks are collaborating to launch a digital wallet. This wallet can be used by people to shop online and will cause direct competition with PayPal and Apple Pay.
Some of these banks include Wells Fargo, Bank of America, JP Morgan Chase, and four others. All these banking giants are working to build a wallet that can be used for online checkout and payments with merchants and can also be linked with their debit and credit cards.
The digital wallet will be managed by Early Warning Services LLC
Early Warning Services LLC will be managing the digital wallet, which is also operating the money transfer service, Zelle. The digital wallet has not been given a name yet according to EWS.
The new digital wallet is likely to begin offering its services by the second half of the year. According to the details provided by the people familiar with the matter, one primary goal of the wallet is to compete with other wallets like PayPal and Apple Pay. The banks have also raised concerns about losing control over the customer relationship as tech giants move into payment services.
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The banks are also expecting to enable over 150 million debit and credit cards within the wallet when it is available to the public for usage. The wallet will be launched with initial support for Visa and MasterCard debit and credit cards.