The U.S. largest banking institutions behind the payment network Zelle, including Bank of America, JPMorgan Chase, Wells Fargo, and four others, are collaborating to introduce a digital wallet that customers can use at the online checkout, Bitcoin.com reported on January 25.

The new digital wallet will function independently of Zelle and be connected to customers' debit and credit cards for online payments. The banks are concerned about losing control of their client relationships, which stands as the main reason for the slowing the third-party wallet giant providers like Paypal and Apple Pay push into consumer banking.

The new wallet will start to be distributed by EWS in the second part of this year. The fintech company has contacted other card networks, such as Discover Financial Services, to gauge their interest in joining Visa and Mastercard, which are already on board, in order to add their cards to the wallet.

The revelation comes after a mixed earnings season for large banks, during which many CEOs, notably Brian Moynihan of Bank of America, issued warnings about the likelihood of a slight recession in the United States. Even though interest rates have increased over the past year, bank stocks have suffered as worries about a recession and a slowing investment banking environment have outweighed increases in net interest revenue.

Source: BITCOIN.COM