Report - wallets

Seven large banks, including Bank of America, JPmorgan Chase and Wells Fargo, have reportedly teamed up in order to launch a digital wallet that will compete with other third -party investors such as PayPal and Apple Pay.

Big banks launch a digital wallet

The Bank of America, JPMorgan Chase, Wells Fargo and Four other financial institutions behind the payment network cell work to launch a digital wallet that can use consumers at the online fund, the Wall Street Journal reported on Monday.

The wallet is managed by the FinTech company Early Warning Services (EWS), which has and operates cells. EWS offers risk management solutions for financial institutions, government agencies and payment companies. It is in the shared possession of Bank of America, JPmorgan Chase, Wells Fargo, Truist, Capital One, PNC Bank and US Bank.

The new digital wallet, which is linked to the buyer's debit and credit cards for online payments, is operated separately by cell. The banks want to compete with other third -party thirds of Wallets such as PayPal and Apple Pay, as they fear that they are losing control of their customer relationships, the publication, citing the matter, shared familiar persons.

ews plans to start with the introduction of the new wallet in the second half of this year. Visa and Mastercard are already on board, and the FinTech company has contacted other card networks such as Discover Financial Services to check their interest in taking their cards in the wallet.

Bernstein analyst Harshita Rawat commented on the news on Monday in a customer notification. She explained that the big banks "have probably always had PayPal-Neid" and added:

It just takes a lot of time to not only like an excellent customer experience (which has to be better than established companies) and a convincing promise of value for retailers in order to build up the two -sided network effects in payment transactions to achieve scaling.

What do you think of the cooperation of large banks in the introduction of a digital wallet to possibly compete with PayPal and Apple Pay? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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