• Seven major banks, including Bank of America, JPMorgan Chase, and Wells Fargo, are collaborating to launch a digital wallet for consumers to use at online checkout.
• The wallet will be managed by Early Warning Services (EWS), which is co-owned by the seven banks.
• The wallet is expected to begin rolling out in the second half of this year and will be linked to shoppers‘ debit and credit cards for online payments.
Seven major banks have come together to launch a digital wallet that will provide consumers with a secure and convenient way to make online payments. Bank of America, JPMorgan Chase, Wells Fargo, Truist, Capital One, PNC Bank, and U.S. Bank are collaborating to create the new wallet, which will be managed by Early Warning Services (EWS). EWS is a fintech firm that specializes in providing risk management solutions to financial institutions, government entities, and payment companies.
The digital wallet will be linked to shoppers’ debit and credit cards, allowing them to make online payments quickly and securely. It will operate separately from Zelle, the payment network owned and operated by EWS. The banks are launching the new wallet in an effort to compete with other popular third-party wallet providers, such as Paypal and Apple Pay, in order to ensure they don’t lose control of their customer relationships.
In order to get the digital wallet off the ground, Visa and Mastercard have already agreed to be part of the project. EWS has also reached out to other card networks, such as Discover Financial Services, to assess their interest in adding their cards to the wallet. The digital wallet is expected to begin rolling out in the second half of this year.
Harshita Rawat, a Bernstein analyst, commented on the news in a note to clients Monday. She noted that the major banks have „likely always had Paypal envy,“ and it simply takes a long time to create a customer experience that can compete with existing payment options.
As the digital wallet project progresses, it will be interesting to see how it fares in comparison to established third-party wallet providers. With the backing of seven major banks, however, it appears that the new digital wallet will be a formidable competitor in the payments space.