The news: Major US banks are banding together to create a digital wallet in hopes of staving off increasing competition from rivals like ApplePay and PayPal, per The Wall Street Journal.
More on this: Large banks including Bank of America, JPMorgan Chase, and Wells Fargo will all offer the digital wallet, which will hold consumers’ debit and credit cards.
Why are banks doing this? The banks’ new payments service might seem redundant with Zelle, but there are some key reasons why they might benefit from this move:
Will it work? For this initiative to succeed, banks must overcome a series of challenges, put in the time and work, and be patient.
Related content: Check out what Payments Innovation analysts have to say about the upcoming wallet launch.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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