A consortium of big U.S. banks working on a rival digital wallet to the likes of Google Pay and Apple Pay will not successfully delay big competitors from unlocking customer banking.
Amid a saturated market of digital wallets 0 some of which banks in consortium have failed to make work a year into operation – the group of banks cannot expect to significantly impale the growth of Apple/ Google and emerge as the customer pay service leader.
Applications like Paypal and Apple Pay and other wallets that have market dominance and the advantage of being fixed downloads on consumer devices will remain untouched.
The other serious problems that banks face are with their cards already being integrated with services like PayPay as established pay providers. They will also need to convince merchants to come onboard with serving their customers in the digital wallet despite loyalty and convenience favouring long-standing providers.
In Forbes’ observations, several customer led preferences were attributed to the doomed proposal for another big bank led wallet including digital convenience, competition in the market, and the quick elimination of banks’ wallets while banking customers are being drawn to other platforms.