• Major US banks including Bank of America, JP Morgan Chase and Wells Fargo are planning to introduce a new system that uses a digital wallet linked to customer credit cards and debit cards.
• The new service is planned to be operated by Early Warning Services (EWS) and will function separately from Zelle.
• The banks intend to develop the wallet to prevent banking customer relationships with big techs like Apple, PayPal, among others.
Major US banks such as Bank of America, JP Morgan Chase and Wells Fargo are currently collaborating on a new system that will revolutionize the way customers make payments using their credit and debit cards. The new digital wallet system is expected to be rolled out in the second half of 2023, and it will be operated by Early Warning Services (EWS).
The plan is to create a digital wallet that will be linked to customers’ credit cards and debit cards. This wallet will enable customers to make online purchases and compete with the likes of PayPal and Apple Pay. The wallet will be separate from the existing Zelle money-transfer service, which is also owned by the banks.
The aim of the banks is to prevent customer banking relationships with technology giants such as Apple and PayPal. The new digital wallet will initially be available for retail customers and will support both Mastercard and Visa cards. Eventually, the wallet will be expanded to enable direct payments from banks to merchants, giving customers more flexibility when they make payments.
The introduction of this new digital wallet system will give customers a safer and more secure way to make payments. It will also provide more competition for big tech companies like Apple and PayPal, who are increasingly encroaching on the banking sector.
This new digital wallet system will be an important step forward for the banking sector and will be a welcome development for customers. With the new wallet, customers will be able to make payments with greater ease and convenience, without having to worry about their information getting into the wrong hands.