Several banks are working on a digital wallet that connects to debit and credit cards in an effort to compete with Apple Pay and PayPal, The Wall Street Journal reported, citing CNBC and News.ro.
The digital wallet will be operated by Early Warning Services, a multi-bank joint venture that also operates Zelle.
According to the WSJ article, the main banks involved include Wells Fargo, JPMorgan Chase and Bank of America.
The new wallet will initially launch with Visa and Mastercard, which are already participating in the project. The early warning service confirmed to CNBC that it plans to launch a wallet product this year.
The move could be seen as an attempt to slow Apple’s push into consumer banking, as the tech giant already offers a branded credit card and is exploring other products for its loyal customer base.
Bernstein analyst Harshita Rawat said in a note to clients on Monday that big banks have “probably always been jealous of PayPal,” but it will take time for the new wallet to pose a serious risk to incumbents.
Source: Hot News
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