Big US Banks Plan to Launch New Digital Wallet in 2023
Several of America’s biggest banks, including Bank of America and JP Morgan Chase, are joining forces to launch their own digital payment wallet according to The Wall Street Journal. This new product will allow consumers to make online purchases tied to their credit cards in the hopes of competing with top apps like Apple Pay, Google Pay, and PayPal.
How Will the New Wallet Work?
The currently nameless wallet will be handled by Early Warning Services (EWS), the company behind the direct money transfer service Zelle – though the two products will reportedly not intersect. The new wallet is expected to arrive in the second half of the year.
The new EWS wallet might work similarly to PayPal, where customers can provide an email address associated with their account during the checkout process at the supported merchants. EWS then connects the banks to find eligible cards for the customers.
It is not clear if this still-in-development wallet by EWS will be easier to use in practice compared to the services it’s meant to compete with. Customers are increasingly getting used to easy and fast checkout processes using services like Apple Pay, which can stack their many different payment cards in one conveniently accessible place.
Benefits for Everyone
At launch, Visa and Mastercard will reportedly be on board for the new wallet, and the involved banks are looking to enable 150 million credit and debit cards from customers with up-to-date info and email addresses linked to their cards.
Like the digital wallets from Apple and others, this new wallet could help cut down on fraudulent transactions stemming from manual credit / debit card number entries. For the banks, it also maintains their relationship with the customers and merchants and their access to potentially valuable data about the transaction.
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