For a long time, Apple Pay and PayPal have led the way when it comes to digital wallets. Big banks are now preparing to compete against top competitors to launch their own digital wallet. The new digital wallet will allow you to pay with a wallet linked to your debit and credit cards.
What’s Happening
Wells Fargo, JPMorgan Chase, and Bank of America are just a few among a group of banks working on the new digital wallet expected to rival Apple Pay and PayPal. The wallet does not have a name yet. However, we know the company that will operate the digital wallet is Zelle, but it will operate separately from Zelle. The new digital wallet is expected to roll out in the second half of this year. According to the Wall Street Journal, the banks hope to enable 150 million debit and credit cards for use when the wallet is made available. Anyone who has provided an email address and phone number, is up-to-date on payments and has recently used their cards online is eligible to use the wallet.
What’s the Purpose
Big banks say they are hoping to keep control of their customer relationships by having their own digital wallet. Apple is being seen as an even bigger threat as it works on creating savings accounts and offers a buy now, pay later option. Banks are also hoping the move will help cut down on fraud. The new digital wallets would not force you to type in your card number, which raises the risk of fraud.
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