From "Banks Plan Payment Wallet to Compete With PayPal, Apple Pay" posted Monday by the Wall Street Journal:
Wells Fargo & Co., Bank of America Corp., JPMorgan Chase & Co. 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.
The digital wallet will be managed by Early Warning Services LLC, 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.
One goal of the new service is to compete with third-party wallet operators such as PayPal Holdings and Apple Inc.’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 Group Inc.GS 1.04%increase; green up pointing triangle and a buy now, pay later offering.
The banks expect to enable 150 million debit and credit cards for use within the wallet when it rolls out. U.S. consumers who are up-to-date on payments, have used their card online in recent years and have provided an email address and phone number will be eligible.
My take: By comparison, 44 million people used Apple Pay last year, out of, I guess, a billion Apple device owners who might be eligible.
"Banks are worried about losing control of their customer relationships."