Not content allowing iPhone users to simply pay for their purchases via its mobile wallet, Apple is reportedly working on a peer-to-peer payment service that will let individuals send money to each other as easily as they would send off a text.
The Wall Street Journal, citing people familiar with the matter, reports that Apple is currently in talks with banks about the new service that would become a rival for PayPal’s peer-to-peer payments app Venmo, Square’s Square Cash and Facebook’s Messenger app.
Apple’s potential service, which doesn’t currently have a name, would allow people to send payments from their checking accounts to recipients through their iOS devices, likely linked to the company’s Apple Pay system.
Many peer-to-peer services already in existence – like Venmo, Square Cash, and Facebook – allow users to send money to friends or others via an app. The payments are generally made by putting in the recipients’ phone number or email address. Although the transfers are sometimes free, providers often charge for certain types of transactions such as when a payment is funded from a credit card rather than a checking account, the WSJ reports. It’s unclear how Apple would handle payments or charges for transfers.
One person with knowledge of the service says that while its launch isn’t imminent, it could be ready as early as next year.
The WSJ reports that Apple has been talking with a number of banks about the service, including JPMorgan Chase, Capital One, Wells Fargo, and US Bank.
Apple is just the latest tech and social media company to dip its toes into a peer-to-peer banking system. Earlier this year, Facebook launched a payments system for Messenger app users.
Apple, Banks in Talks on Mobile Person-to-Person Payment Service [The Wall Street Journal]
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