frankfurt Seven big US banks want to start their own payment app and thus payment services PayPal Y Apple Put Pay in its place. Well Fargo, Bank of America, JP Morgan and four other financial institutions are already working on the new product, according to the Wall Street Journal (WSJ).

Consumers must store their debit and credit cards in what is known as a wallet and be able to use them to pay online. It is being built by the financial start-up Early Warning Services, belonging to the big banks and which already has the PayPal-Competitors in the cell. USA Opera. The company has yet to give the planned app a name.

A target of the offer is the online payment service Paypal and Apple Pay, iPhone maker Apple’s payment service, to take on the WSJ, citing experts. Banks worry that they may lose control of the customer relationship. Now they bet that 150 million credit and debit cards will be stored in the wallet.

>> Read more here: MasterCard Y visas instead of Maestro: The first savings banks have redeemed the Girocards

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With both Apple Pay and Paypal, customers in the US often store their credit card as well, which is much more common in the US than in Germany. Germany. The respective digitized map is inserted into the smartphone applications. In addition, Apple Pay is currently working on offering other financial services, for example together with the bank. Goldman Sachs announced a savings account.

In addition, the owners of the Early Warning Services are using the new application to turn back fraud cases. Consumers using the app do not have to enter card numbers for each transaction. Entering digits is considered a fraud risk. However, this is not necessary with Paypal and Apple Pay.

Subordinate role for Paydirekt

However, the advance of US banks is late. After all, Paypal and Apple Pay were established a long time ago. In addition, retailers would also have to accept the new payment method and integrate it into their online stores.

How difficult it can be to set up a new online payment service as a newcomer was demonstrated by the example of Paydirekt in Germany, and that was a few years ago. German banks started Paydirekt in 2015 with high ambitions, but hopes were far from being fulfilled. Above all, Paydirekt should counter PayPal, which is very popular in Germany. However, it only plays a minimal role in German e-commerce.

The merger of Paydirekt and Giropay, the second payment method used by German banks, two years ago was not much of a breakthrough either. Giropay was founded in 2005. The common payment method is now just called Giropay, the company behind it is still Paydirekt. The company belongs to savings banks, cooperative banks and german bank and the commerzbank.

Decision on PPE awaited

Several European banks are currently considering a joint payment offer. The European Payments Initiative (EPI) also aims to develop a wallet that consumers can use to use various payment options. These include mobile-to-mobile payments, payments when you shop online, and at checkout.

It is obvious that existing payment cards are also deposited in EPI; in Germany, above all, the widely used Girocard, better known by its old name “EC card”. Initially, the idea of ​​launching its own EPI payment card was considered.

It will be decided soon if and how EPI will be implemented. The prestige project was launched in 2020 by numerous major European banks. However, many of the original 30 EPI banks have since left.

German cooperative banks had their share in EPI as Commerzbank initially canceledbecause they didn’t agree with the original lineup. However, the Volks- und Raiffeisenbanken later signaled its approval of the reduced version. Also savings banks and german bank they are in

With EPI, the proponents aim to make the European financial industry more independent from powerful US credit card and payment companies. MasterCard Y visas as well as PayPal.

The governments and central banks of Germany and other European member states support the project because they believe it would be important to strengthen the EU’s European financial market.

More: Bundeskartellamt initiates proceedings against Paypal

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