US Big Banks team up to rival payment giants

Several major banks are reportedly working on a new digital wallet service that aims to compete with Apple Pay and PayPal. The digital wallet, which is being developed by Early Warning Services, a joint venture from several banks that also runs Zelle, will be linked to debit and credit cards.

According to media reports, the banks involved in this venture include Wells Fargo, JPMorgan Chase, and Bank of America.

The new wallet is expected to be launched with Visa and Mastercard already on board. This move can be seen as an attempt by the banks to slow down Apple’s push into consumer banking. The technology giant already offers a branded credit card and is exploring other products for its loyal customer base.

The news of this new digital wallet has caused a decline in the shares of PayPal, which has digital payments as its core business. This comes after a mixed earnings season for big banks, with several CEOs, including Bank of America’s Brian Moynihan, warning that the U.S. is likely to see a mild recession.

Bank stocks have struggled over the past year, even as interest rates have risen, as fears of a recession and a slower investment banking environment have offset gains in net interest income.

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