Big US banks planning digital wallet to compete with Apple and PayPal

In the US, the largest banks already work collectively on Zelle cash transfers, and now they’re planning a digital wallet to compete with the likes of Apple, PayPal, and Google.

According to the Wall Street Journal, this “new product that will allow shoppers to pay at merchants’ online checkout with a wallet that will be linked to their debit and credit cards.” There’s no identify/branding but, with different particulars presumably altering earlier than the deliberate second half of 2023 launch.

U.S. shoppers who’re up-to-date on funds, have used their card on-line in recent times and have offered an e-mail deal with and telephone quantity will likely be eligible. 

In phrases of the top person expertise, it would contain typing in your e-mail deal with on a checkout web page, with the service provider then checking with this new digital wallet to “identify which of the consumer’s cards can be loaded.” You then choose one for the transaction and received’t have to enter your card quantity, which may also help cut back fraud. 

In phrases of logistics, this will likely be operated by the identical three way partnership (Early Warning Services LLC) that’s behind Zelle at the moment, although it is going to be impartial of the switch service.

EWS is owned by Bank of America, Capital One, JPMorgan Chase, PNC, Truist Financial, U.S. Bank, Wells Fargo, with WSJ reporting that “the banks expect to enable 150 million debit and credit cards for use within the wallet when it rolls out.” Visa and Mastercard will likely be supported at launch.

The objective of that is to fight Apple Pay and PayPal, banks reportedly “worried about losing control of their customer relationships.” Google Pay/Wallet shouldn’t be talked about within the WSJ article, however Google does compete in that space. 

• Apple Pay Later helps you to pay in installments, immediately in Wallet app, inc 0% curiosity
• Apple Card integrating new financial savings account function for Daily Cash

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