The human arsenal might be expansive beyond all limits, but it has still never possessed anything more valuable than that tendency of ours to grow on a consistent basis. We say this, by and large, because the stated tendency has already got us to hit upon some huge milestones, with technology appearing as a major member of the group. Talk about why technology enjoys such an esteemed stature among people, the answer for that literally touches upon its skill-set before it covers anything else. Nevertheless, if we dig a little deeper, it should become clear how the whole runner was also very much inspired from the way we applied those skills across a real-world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence, and consequentially, kickstarted a tech revolution. Of course, this revolution then went on to scale up the human experience from every conceivable direction, but even after achieving such a monumental feat, technology will somehow continue to deliver the right goods. The same has turned more and more evident in recent times, and assuming a new development around the fintech space works out just like envisioned, it will only help that trend to become a much bigger deal moving forward.
Several major US banks, including JP Morgan Case, Bank of America, Wells Fargo, and others, have teamed up to conceive a new digital wallet, which will essentially make their case against the growing stronghold of Apple Pay and PayPal. Set to hit the market with support from both Visa and Mastercard at launch, the stated wallet will be handled by Early Warning Services (EWS), the company that also operates direct money transfer service, Zelle. But how will the product work from a more actionable standpoint? Well, interestingly enough, the wallet is expected to work a lot like PayPal. This means that, if someone wants to make a transaction, they just have to provide the email address associated with their account and the platform will take care of the rest. Another detail worth mentioning here is how the jointly-developed payments wallet will also deliver an enhanced cybersecurity edge by cutting back on those fraudulent transactions which are usually realized through the channel of manual credit / debit card number entries.
Although the offerings, like you can see, are pretty expansive, the finance community has predicted the wallet to take a long time before it can pose any meaningful threat to players like Apple and Paypal.
“It simply takes a very long time, a killer customer experience (which needs to be better than incumbents, not just similar), and a compelling merchant value proposition to build the two-sided network effects in payments to achieve scale,” said Harsha Rawat, an analyst at Bernstein.
The currently-unnamed wallet comes amid tech companies’ growing interest in the fintech space. An easy example for the same would be Apple’s recent decision to introduce a credit card of its own, along with a “high-yield Savings account”. The company is also working to enter the Buy Now, Pay Later market at some point during 2023. Hence, with new, and more importantly, much smarter players now getting ready to play the financial game, it’s important for traditional banks to shed their old ideologies and start offering what can be deemed as a modern experience. The banks involved here would hope that their latest brainchild is able to initiate the stated transition.
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