Banks Plan Payment Wallet To Compete With PayPal, Apple Pay (wsj.com) 65
Big banks are teaming up to launch a digital wallet that people can use to shop online. Wells Fargo, Bank of America, JPMorgan Chase and four other banks are working on a new product that will allow shoppers to pay at merchants' online checkout with a wallet that will be linked to their debit and credit cards. From a report: The digital wallet will be managed by Early Warning Services, the bank-owned company that operates money-transfer service Zelle. The wallet, which doesn't have a name yet, will operate separately from Zelle, EWS said. EWS, whose owners also include Capital One, PNC Financial, U.S. Bancorp and Truist Financial, plans to begin rolling out the new offering in the second half of the year.
One goal of the new service is to compete with third-party wallet operators such as PayPal and Apple's Apple Pay, according to people familiar with the matter. 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 and a buy now, pay later offering.
One goal of the new service is to compete with third-party wallet operators such as PayPal and Apple's Apple Pay, according to people familiar with the matter. 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 and a buy now, pay later offering.
Two words. (Score:1)
Collusion.
Re: Two words. (Score:2)
That's one word.
Re: (Score:2)
I was originally going to type two words but then combined them to form one more powerful word. Sorry.
Re: (Score:3)
Re: (Score:2)
I'm amazed it is even news.
Why? (Score:2)
Why make more of the same?
Go do something different.
Re: (Score:2)
Re: (Score:2)
All doing the same thing. All with the same issues. This looks to continue the trend.
Re: (Score:2)
Re: (Score:2)
I don't think he was shilling, one legit way to innovate is to make an existing service substantially cheaper by not charging similar fees.
Re: (Score:2)
Smaller profit margins is not "innovation".
Re: (Score:2)
Re: (Score:2)
Sure. And as a customer, what is my incentive to stop using the payment method I've been using for years, and switch over to some random' bank's shit?
Re: (Score:2)
Re: Why? (Score:2)
https://support.google.com/goo... [google.com]
I haven't had any trouble paying at any store with the NFC emblem in a couple years on my android phone.
Re: (Score:2)
Re: (Score:3)
Already in place.
The places that have a "pay with amazon" aren't very common, but I've done it already.
No thanks (Score:3)
Then again, not like I would use one. I trust my phone less than my wallet, and my wallet is a foldy bit of leather.
Re: (Score:3)
At least your phone requires authentication before allowing it to be used as a conduit to your money pool(s).
If you lose your wallet, hopefully you notice it immediately and deactivate all your cards...
My wife lost her debit card recently and she noticed it missing within minutes, yet there were already fraudulent purchases on it before she deactivated it within the app.
Re: (Score:2)
They are called pockets. Put it in one of the front ones. Don't put it in a bag. Her fault for that one.
Unless she was mugged and the card stolen from her. Then I apologize.
Re: (Score:1)
Biometric. Who uses SMS for an on-device phone wallet?
Re: (Score:3)
Re: (Score:2)
I have been unable to access my phone before because of a paper cut.
Re: (Score:2)
I have been unable to access my phone before because of a paper cut.
I would say that this proves the point that the average opportunistic thief who grabs your phone won't be able to unlock it and use the payment method(s) contained in its wallet.
Re: (Score:2)
All your cards? Christ. How many cards do you have in your wallet?
Re: (Score:2)
Re: (Score:2)
Re: No thanks (Score:2)
That's great...but the question was in the context of "deactivating" cards to prevent monetary losses.
So....I thought it was obvious, but I guess not. I was talking about credit and debit cards, not ID cards and rewards cards.
I have one credit card in my wallet and no debit cards.
No rewards cards, National ID cards, insurance cards or bus passes either, but out of scope for the question anyway.
Re: (Score:3)
I do NOT want wallets to compete on features.
Why not? Physical wallets compete on features. This one is trifold, that one is sized correctly for European banknotes vs US, the other one has RF shielding, ooh look a wallet made of Corinthian leather, stamped with a SpongeBob print. "Feature" competition is good. What is NOT good is ACCEPTANCE competition. If I go to a retailer and they say "we only support FlubPay and not GlubPay", I immediately say "screw all that XPay nonsense" and pull out a universal payment token: credit/debit card. Or cash.
Re: (Score:3)
^^^ This ^^^
I do not trust my phone enough to give it access to anything related to my finanicial accounts. At all.
I don't even trust my phone enough to use it for any website that requires a login / password.
I keep ~$100 USD in cash in my wallet at all times with my one Credit Card. I do not carry my debit
card with me. Restaurants and fuel are paid for with cash.
Once I started paying for food and fuel with cash, my credit card has not been compromised since.
( Prior was probably every six months or so )
Re: (Score:2)
To each their own. But I have never had fraudulent purchases on a credit card. I use tap-to-pay from my phone or credit card almost exclusively. Inserting things into untrusted readers is like (insert uncolorful metaphor here)...
Wallets... (Score:2)
Oh, physical wallets and digital wallets like Apple's. :P
Re: (Score:2)
This sounds like a bad idea. I do NOT want wallets to compete on features.
Then again, not like I would use one. I trust my phone less than my wallet, and my wallet is a foldy bit of leather.
This just really sounds like a new and exciting way for banks to charge additional merchant service fees. A while a go banks figured out that if they charged you a fee for using your cards, you'd stop. So they figured they could charge the merchant for accepting them and threaten the merchant into hiding this extra cost into their prices.
What the US needs is something that the rest of the developed world takes for granted, a fee free interbank transfer system. I can send money between any two Australian
Receipts (Score:2)
Why haven't they worked with Visa and Mastercard to facilitate merchants the ability to transmit itemized receipts with their corporate credit card transactions? It would help accounting BS a lot. Before you start screaming privacy bullshit, I said corporate credit cards and I said it will be opt-in.
Re: (Score:2)
No reason to limit this to corporate cards. I'd like itemized receipts too....in a form that I can pull into a spreadsheet and not so abbreviated that I can't tell what the fuck I bought too.
Re: (Score:2)
Because itemisation isn't a standard thing you can automate across vendors blindly. Different vendors itemise different charges in different ways. And if you want to work with all of them individually, ... well how much time have you got?
Good (Score:1)
Anything that puts those fuckers at PayPal out of business is ok by me.
Re: (Score:1)
What do you have against PayPal?
Honest question.
Re: (Score:1)
What do you have against PayPal?
Honest question.
Read their privacy policy. It's data rape.
Um, nope. (Score:1)
This is the same Bank of America that wanted to move its operations overseas because Americans are SO expensive [techdirt.com]. And Wells Fargo's recent history (of infamy) speaks for itself. So they get together to try to compete with PayPal.
Whatever issues PayPal may have, I trust it a lot more than I trust BofA/Wells Fargo/whatever else.
Re: (Score:2)
what about Google Pay/Wallet ? (Score:3)
I can pay online with my Google Wallet too (I'm part of the 15 people outside of USA who do not have an Apple product), and it's free I think for both the merchant and me.
In Brazil, we have something like it (Score:1)
Re: In Brazil, we have something like it (Score:1)
Only slightly dumb (Score:2)
In that it took them so long to do this.
As a result of an incident with paypal a number of years ago, I found out that they are an Automated Clearing House (ACH).
Banks have been running ACHs for decades to clear checks across banks i.e. I write you a check from my account on BofA and you deposit it into your account at Wells.
Good (Score:2)
The banks are regulated, PayPal and Apple Pay are not.
Competition is a good thing.
Re: (Score:2)
PayPal is regulated. Depending on where you are, it may be an actual bank, or a money transmitter of some description.
Apple Pay is a kind of front end for other transaction networks, from VISA to local debit networks. They're all regulated.
Re: (Score:2)
PayPal is regulated.
Please don't be autistic. You know exactly what the OP meant, and no Paypal is not at all regulated to that extent.
Re: (Score:2)
Paypal is *literally* a bank in many places, including all of Europe.
Re: (Score:1)
The more, the merrier... (Score:2)
It would be nice to have an alternative to Apple Pay, GPay, and Samsung Pay at the gas station. Some type of NFC processor that I can just bring near the pump's reader, call it done, and not depend on having an Apple device, or play cat-and-mouse with Google's stuff so I can keep a rooted phone.
The NFC stuff is quite useful in ensuring that a passive skimmer doesn't get card data, although I'm sure it is only a matter of time before we see active MITM attacks.
Re: (Score:1)
If you have one of the newer cards with a wireless chip built-in for contactless payments, you already have that ability.
Re: (Score:2)
It would be nice to have an alternative to Apple Pay, GPay, and Samsung Pay at the gas station. Some type of NFC processor that I can just bring near the pump's reader, call it done
Are you describing a stock standard credit card with chip like the kind we've been using for 10+ years?
Re: (Score:2)
Nay. The advantage of something like Apple Pay, etc... is that you explicitly allow payment with a PIN, FaceID, or fingerprint. Yes, NFC cards do work, but having some authentication other than just physical closeness would be nice.
Re: (Score:2)
10+ years? In Europe maybe, but not in USA. I started to use NFC to pay in ~2016, and a lot of place in USA were still mag swipe and sign. The first time I paid with my phone in CVS the cashier was speechless and didn't understand what happened. I remember a Dollar Tree cashier went instant barbarian when I paid with my phone, it was the first time he saw this, he brought all this colleagues yelling "HE PAID WITH HIS PHONE" while jumping in the store, it was 2016!!!
Or some waitress in Pizza Hut saying "we d
Why ? (Score:2)
Re: (Score:3)
Folks also tend to forget what their plan of action is when the networks or power goes down and their only means of payment are via their phone :|
Now with built-in carbon credits! (Score:2)
How Jamie Dimon sees it (Score:2)
Chase Bank Head Cheese Jamie Dimon has a very different take on "The buck stops here".
More surveillance (Score:2)
Where are the card companies on this? (Score:1)
What I donâ(TM)t get is way Mastercard and visa donâ(TM)t develop their own app? Wouldnâ(TM)t they save mucho money in card distribution costs alone, much less physical card fraud and fraud linked to lost and stolen cards?