New Digital Wallet from Massive US Banks to Compete with Apple Pay, PayPal, Google Pay—Why?

There is a coalition forming, and it is among the top banks in the United States that aims to launch a new digital wallet service for the public to use in their online and in-person transactions. The goal is to combat famed services present in the market, and it is from Big Tech companies including Apple Pay, Google Pay, and PayPal.

Its new digital wallet does not have a name yet, but it will be managed by the service co-owned by these seven banks called the Early Warning Services LLC or EWS.

New Digital Wallet from Massive US Bank Companies

The Wall Street Journal reported that there is a new project that the massive US bank companies are planning, and it is to launch a digital wallet that will rival those from Big Tech. The service would be from EWS, but the report claims that the banks want it independent from Zelle, a renowned digital payment network that centers on transfers.

The banks that own EWS include Bank of America, Capital One, JPMorgan Chase, PNC, Truist Financial, U.S. Bank, and Wells Fargo.

These are also the companies who want to push for the new digital wallet under EWS, one that could effectively rival those services widely used by the public.

WSJ said that the top US banks want to avoid "losing control of their customer relations."

Competing with Apple, Google, PayPal

According to 9to5 Google, the new digital wallet service from EWS would compete with the likes of Apple Pay and PayPal, with WSJ not mentioning Google Pay.

However, Google is also a massive player in the digital wallets platform, especially with its massive reach via Android smartphones whose money transfers and payment schemes center on Google Pay.

Digital Wallets from Big Tech

The era of digital wallets is now, and looking at different transactions will show a person that it is indeed one of the most used platforms in the world. One of the most famous features here is the tap-to-pay feature, and it is available on the top three services from Big Tech.

Apple introduced Apple Pay to deliver this experience via Wallet, and it also partnered with Goldman Sachs to deliver the Apple Card that gives out physical plastic.

On the other hand, Google's take on Google Pay centers on many features including cashbacks, connecting with Coinbase for crypto transactions, and more.

Then, there is the famous fintech company famously known as PayPal, which started as an internet service in 1998, one that was co-founded by Elon Musk.

Digital Wallets have these three top names leading the industry and many more fintech companies which center on a different payment system aside from the traditional ones. Massive US banks want to join the competition and offer a service of their own, fulfilled by EWS.