Banks’ potential new online wallet unlikely to threaten PayPal, says BofA

After the WSJ reported yesterday that the consortium of large U.S. banks behind the Zelle platform is teaming up to launch a new online digital wallet, BofA analyst Jason Kupferberg said that based on "the limited information reported in the WSJ article" the firm does not see a clear benefit of this product for either consumers or merchants relative to existing solutions so they think at this point that such a new online wallet is unlikely to threaten PayPal (PYPL) or the payments incumbents. The firm maintains Buy ratings on PayPal, Mastercard (MA) and Visa (V).