The new wallet will enable consumers to make online purchases using Visa or Mastercard debit or credit cards. It will be managed by Early Warning Services (EWS), which also operates the Zelle money-transfer service.
Sources have said that one of the main goals of the new wallet is to compete with third-party options like Apple Pay and PayPal, as banks are worried about losing their hold on customer relationships. EWS is owned by seven banks, including Wells Fargo, Bank of America, JPMorgan Chase, and Citi.
The new wallet is expected to launch in H2 2023 and will be separate from Zelle. At launch, 150 million debit and credit cards will be available for use. Consumers with up-to-date payments and previous online card usage will be eligible if they supply their email and phone numbers.