Recently, more and more companies and financial institutions are expanding into cryptocurrencies and blockchain technology to connect with even more people. Recently, the Wall Street Journal reported that America’s largest banks are teaming up to create a digital wallet with the primary goal of competing with PayPal and Apple Pay.
Banks pushing for the partnership include JPMorgan, Bank of America, Wells Fargo, Capital One Financial, US Bancorp, PNC Financial Services Group and Truist Financial. According to his plans, their new wallet will be available to their customers in the second half of 2023.
A according to news people will be able to use the wallet for online shopping and it can be connected to debit and credit cards at the same time. More than 150 million debit and credit cards will be enabled within the wallet when it becomes available to the public. The wallet will initially support Visa and MasterCard debit and credit cards. Early Warning Services LLC will manage the digital wallet, which also operates a money transfer service called Zelle.
It’s worth noting that PayPal shares briefly fell 2.76% from $78.97 to $76.79 after the article came to light, but then stabilized.
According to the post, these wallets won’t require users to enter card numbers like other services do. Banks hope this will reduce the risk of fraud and payment rejections, which can cost merchants money and reputation.
Instead, people need to enter their email address during payments. The merchant then pings the EWS, which contacts the banks to identify which of the user’s cards can be used with the wallet. During this, you can choose which existing card to pay with, or even cancel the purchase.