7 major banks would have joined forces to set up their own digital wallet. We are talking about big names such as Wells Fargo, JP Morgan Chase and Bank of America. The end goal would be to compete with PayPal and Apple Pay.
PayPal and Apple Pay: two heavyweights that scare the big banks
According to data provided by Statista, PayPal had over 400 million active users in 2022. Apple Pay meanwhile had 500 million, despite not being available on Android. People increasingly prefer to pay with wallets. So, in order not to lose the relationship they have with their customers, we learned from bitcoin news that 7 major banks will create their digital wallet. Recall that these banks have already had to work on a payment network called Zelle. The banks in question on this digital wallet project are: Bank of America, JPMorgan Chase, Wells Fargo, PNC Bank, US Bank, Truist and Capital One.
Incidentally, the new digital wallet will be managed by Early Warning Services (EWS). This fintech company which belongs to the 7 banks owns Zelle. EWS has already contacted Visa and Mastercard. Indeed, the digital wallet will be linked to customers’ debit and credit cards. Discover Financial Services is EWS’ next target. The new portfolio is expected in the second half of 2023.
Is this new digital wallet bad news for cryptocurrencies?
The first use of cryptocurrencies in the world is international payments. They are very practical for this task. If a digital wallet from a major bank were to compete with cryptos in this area, it could be bad for them. Especially since at the moment, national and international financial authorities are wary of cryptocurrencies. Indeed, since the fall of FTX and several other exchanges, distrust of cryptocurrencies has multiplied.
Convincing their customers to adopt a new payment solution when several already exist will not be easy. It may even take several years as well as tens of millions. But maybe things would go faster if the big banks offered cryptocurrency payments.
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