Big banks are teaming up to launch a digital wallet that people can use to shop online. Wells Fargo, Bank of America, JPMorgan Chase and four other banks are working on a new product that will allow shoppers to pay at merchants’ online checkout with a wallet that will be linked to their debit and credit cards. From a report: The digital wallet will be managed by Early Warning Services, the bank-owned company that operates money-transfer service Zelle. The wallet, which doesn’t have a name yet, will operate separately from Zelle, EWS said. EWS, whose owners also include Capital One, PNC Financial, U.S. Bancorp and Truist Financial, plans to begin rolling out the new offering in the second half of the year.
One goal of the new service is to compete with third-party wallet operators such as PayPal and Apple’s Apple Pay, according to people familiar with the matter. Banks are worried about losing control of their customer relationships. Apple, in particular, poses a big threat. The tech giant has moved further into financial services and is working on a savings account with Goldman Sachs and a buy now, pay later offering.