Seven major banks, including Bank of America, JPMorgan Chase, and Wells Fargo, have reportedly teamed up to launch a digital wallet that will compete with other third-party wallet providers such as Paypal and Apple Pay.
Big Banks to Launch a Digital Wallet
Bank of America, JPMorgan Chase, Wells Fargo, and four other financial institutions behind the payment network Zelle are collaborating to launch a digital wallet for consumers to use at online checkout, The Wall Street Journal reported Monday.
The wallet will be managed by fintech firm Early Warning Services (EWS), which owns and operates Zelle. EWS provides risk management solutions to financial institutions, government entities, and payment companies. It is co-owned by Bank of America, JPMorgan Chase, Wells Fargo, Truist, Capital One, PNC Bank, and U.S. Bank.
The new digital wallet, which will be linked to shoppers’ debit and credit cards for online payments, will operate separately from Zelle. The banks aim to compete with other third-party wallet providers such as Paypal and Apple Pay as they are worried about losing control of their customer relationships, the publication conveyed, citing people familiar with the matter.
EWS plans to begin rolling out the new wallet…