Group of seven big banks collaborating to launch a new digital wallet
Group of seven big banks collaborating to launch a new digital wallet for consumers to use for online shopping. These seven major financial institutions include Bank of America, JPMorgan Chase, Wells Fargo, Truist, Capital One, PNC Bank, and U.S. Bank. The aim is to launch a new digital wallet. It will compete with third-party wallet providers such as Paypal and Apple Pay.
These seven big banks behind the payment network Zelle are working to establish a digital wallet for consumers to use for online shopping. customers will be able to make secure and convenient online payments, while banks will be able to maintain control of client relationships and offer a greater range of services. The new digital wallet will operate separately from Zelle, and will be linked to shoppers' debit and credit cards for online payments. The banks want to compete with other third-party wallet providers like Paypal and Apple Pay because they are concerned about losing control of their customer connections.
Bank of America, JPMorgan Chase, Wells Fargo, Truist, Capital One, PNC Bank, and US Bank jointly own the company.
Early Warning Services (EWS), which owns and operates Zelle payment network, will handle the digital wallet. Financial organizations, government agencies, and payment firms can all benefit from EWS' risk management solutions. EWS planning to launch the new wallet in the second half of this year. Visa and Mastercard have already signed on, and the fintech business have contacted other card networks, such as Discover Financial Services, to gauge their interest in adding their cards to the wallet.
This step taken by financial institutions to protect their customer relationships in the face of competition from non-traditional financial companies. They will be able to keep users within their ecosystem and offer a greater selection of services that can be accessed through the wallet by providing a digital wallet. Customers will have a more convenient and smooth experience, while banks will retain control of the customer relationship.
CBW - External Analyst