The largest US banks intend to create a competitor for
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The largest US banks intend to create a competitor for PayPal and Apple Pay to retake the online payments market

A number of financial institutions including Wells Fargo & Co., Bank of America Corp., JPMorgan Chase & Co. are developing a new solution that will allow you to pay for online purchases with a wallet linked to debit and credit accounts from customers is linked. About that informed The Wall Street Journal resource.

    Image Credit: Stephanie Keith/Bloomberg News

Image Credit: Stephanie Keith/Bloomberg News

The digital wallet’s operations are operated by Early Warning Services LLC (EWS), which is owned by seven of the largest US banks, including Capital One Financial Corp., PNC Financial Services Group Inc., US Bancorp, and Truist Financial Corp., and operates the money transfer service cell. According to EWS, the new wallet will be operated separately from cell. It is slated to launch in the second half of this year.

The new service will challenge outside wallet operators like PayPal and Apple, whose expansion into financial services is threatening banks’ control over customer relationships, sources told The Wall Street Journal. Apple, in particular, has made significant strides in this direction and, in partnership with Goldman Sachs Group, plans to open high-yield savings accounts for Apple Card holders and introduce “buy now, pay later” rates.

The new proposal will also help fight fraud. When using their wallet, customers do not have to enter their card numbers and risk fraud and payment denials, which in turn means lost sales.

It is expected that around 150 million debit and credit cards will be connected to the new service. US consumers who have used a bank card to pay for online purchases in recent years and have provided an email address and phone number can also access a digital wallet.

Previously, The Wall Street Journal reported that EWS owners discussed the possibility of using the Zelle service to pay for online purchases last year. However, due to the risk of fraud and some legal obstacles, it was decided to abandon this idea.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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