Bank of America and other major banks in the United States are reportedly planning to create a digital wallet together. They will join forces to rival the leading e-wallets such as PayPal and Apple Pay.

At least seven banks are said to be working on a new product that will let customers pay merchants using a digital wallet that will be linked to their credit and debit cards. Those with bank-issued cards will be able to shop online by using the said wallet at checkout.

According to CNBC, Bank of America Corp., Wells Fargo & Co., JPMorgan Chase & Co., and four other big banks are teaming up to launch such digital wallets that will make shopping more convenient. The banks’ are also aiming to compete with e-wallets in the U.S.

It was said that Wells Fargo and other banks are expecting to activate 150 million debit and credit cards so they can be used within a digital wallet. The digital wallet with links to the banks is set to be operated by Early Warning Services, which is a joint venture of several banks that also operates Zelle.

Initially, the wallet will be introduced with Visa and Mastercard already connected. Early Warning Services revealed that the banks are planning to release a new e-wallet this year.

The launch is being considered as a move to slow down Apple’s determined attempt to drive deeper into consumer banking since it is already offering a branded credit card. The iPhone maker is also developing other products for their loyal customers.

Finally, The Wall Street Journal reported that the banks’ one goal for their digital wallet is to catch up and, perhaps, surpass PayPal Holdings Inc. and Apple Pay, which are currently the leaders in digital payments and transactions. The source who has knowledge of the matter further said that the banks especially see Apple as a threat.

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