The Big Banks Are Planning a Digital Wallet -- Should PayPal Investors Be Worried?
In its most recent quarterly report, PayPal (NASDAQ: PYPL) reported more than $1.3 trillion in annualized payment volume on its platforms. So, it shouldn't be too much of a surprise that the big banks want a piece of the action.
According to a Wall Street Journal report, a group of banks is developing a digital wallet that will let shoppers pay at merchants' online checkouts, similar to how PayPal's wallet works. While there aren't many details on the product yet, the report indicates the new wallet will be managed by Early Warning Services, the company owned by a group of seven major banks that also owns and operates payment platform Zelle.
There are some big players involved in EWS. The seven institutions that own EWS are Bank of America, Wells Fargo, JPMorgan Chase, Capital One Financial, PNC Financial, U.S. Bancorp, and Truist Financial, so it's fair to say there are a lot of bank accounts, debit cards, and credit cards that could potentially be linked to this new wallet. This raises the question: Should PayPal and its investors be concerned?
Source Fool.com
