Major US Banks Launch New Digital Wallet to Challenge PayPal, Apple
A group of major US banks, including Visa and Mastercard, are set to launch a new digital wallet for online shopping. This move, reported by The Wall Street Journal, could challenge established payment platforms like PayPal and Apple. The wallet, managed by Early Warning Services, will initially support cards from Visa and Mastercard, with Discover also in talks to join.
The new digital wallet aims to compete with third-party operators by offering high-yield savings accounts and buy-now-pay-later services. This could potentially pose a threat to banks' consumer relationships. The wallet, expected to launch in the second half of the year, will operate separately from Zelle, another payment service owned by Early Warning Services.
Analysts suggest it may take time for the new wallet to become a serious competitor. Harshita Rawat, an analyst at Bernstein, believes it will need to prove its value to users and gain traction in the market. The wallet's success may depend on factors such as user adoption rates and the addition of other payment options, like direct bank account payments.
The new digital wallet, a collaboration between major banks and payment networks, seeks to provide consumers with more options for online shopping. While it may take time to compete with established players, the wallet's unique offerings could attract users and reshape the digital payment landscape.
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