It sounds good on paper, but in reality it’ll probably just fragment the market and we’ll all end up with 10 different wallet apps.
Yes, that's called
competition. In theory, that means that wallet apps would have to compete on quality of services and charges to encourage businesses to accept them, so that they could attract consumers.
In practice - the market probably wouldn't support 10 serious players so it would get whittled down to 2-3, which is when we need "competition laws" like the EU DMA (or endless civil lawsuits in the USA) to ward off anticompetetive practices and encrudification.
Ideally I'd prefer just to have the apple wallet. All my bank/credit cards work with it. It's simple and quick to use. Alternate is if there's another 1 or 2 wallets (Google, Paypal?) that again all bank/credit cards support. I then chose which one to use.
There is a world outside Apple and it is exactly like that - I use both Google Pay and Paypal, because not all sites accept both, they both work with my bank/credit cards - or direct debit to my current account - and if your bank
doesn't support them that's enough of an annoyance to justify shifting banks. Then, plenty of online shopping sites don't support either so its credit card numbers at dawn.
Reality more like: every bank wants you to use their own app and won't work in Apple/Google/Paypal's wallet.
Yet after 70-ish years of credit/charge cards and who-knows-how-many banks, in terms of what
merchants will accept, it has whittled down to Visa, MasterCard or Amex plus also-rans, with Amex already being a bit niche. Even Wallet services like PayPal have been around for a quarter century yet there's still only 3 that matter.
The wallet apps only exist because the banks and card networks have been hopelessly slow to update a system that is only just starting to evolve beyond a virtual version of the old carbon paper card impression (especially in the USA where even chip-and-PIN is somehow deemed 'less secure' than letting the waiter disappear into a back room with your credit card...). I suspect that, longer term, Google/Apple/Pay/Pal will absorb MasterCard/Visa/Amex (or vice-versa) somehow - at least in terms of consumer-facing services.
My last credit card statement had some information-free blurb about a new scheme to make online purchases without having to enter your card number - you know, the way PayPal has done for 20 years - so they may be finally dragging themselves into the noughties.