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From the Wall Street Journal this morning, a story about how "big banks are teaming up to launch a digital wallet that people can use to shop online," essentially positioning themselves to compete more effectively with PayPal and Apple Pay.

The owners include Wells Fargo, Bank of America, JPMorgan Chase, Capital One, PNC Financial Services, US Bancorp, and Truist Financial Corp., and the new, as-yet-unnamed product "will be managed by Early Warning Services LLC, the bank-owned company that operates money-transfer service Zelle.  However, the new wallet will operate separately from Zelle.

According to the story, "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 and a buy now, pay later offering. 

"EWS’s owner banks are also trying to cut down on fraud. Customers using their wallet wouldn’t have to type in their card numbers, which can raise the risk of fraud and rejected payments that result in lost sales.

"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."

KC's View:

Just one more wallet that retailers are going to have to figure how to accept.  I guess it makes sense in terms of the major player involved, but this all only gets more complicated, especially for shoppers.  Too many options, in my view.