Bank of America, JPMorgan and other banks have reportedly teamed up on a digital wallet to rival Apple Pay

Brendan McDermid | Reuters

Several banks are reportedly working on a digital wallet linked to debit and credit cards to compete with Apple Pay and PayPal.

According to the wall street journal, the digital wallet would be operated by Early Warning Services, a joint venture of several banks that also operates Zelle. Major banks involved include Wells Fargo, JPMorgan Chase and Bank of Americaaccording to the report.

The new wallet would initially launch with Visa and MasterCard already on board, according to the report.

This decision could be seen as an effort to slow down Applein retail banking, as the tech giant already offers a branded credit card and explores other products for its reputedly loyal customer base.

Shares of PayPal, whose core business is digital payments, fell about 1.5% in premarket trading.

The report follows a mixed earnings season for big banks, with several CEOs, including Bank of America’s Brian Moynihan, warning that the United States was likely to experience a slight recession. Bank stocks have struggled over the past year even as interest rates have risen as fears of a recession and a slowing environment for investment banks reversed gains. net interest income.

Read the full WSJ story here.

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