Apple is said that is in talks with the U.S. banks over a potential person-to-person mobile payment service, which would perhaps be positioned as an expansion to Apple Pay, and at the same time allow people to send each other payments, similar to PayPal’s Venmo or Square’s Square Cash service.
According to The Wall Street Journal, it is little known about the talks and the source says communication between Apple and banks is ongoing and it’s not known if Cupertino-based company has inked any concrete deals. Apple is said to be speaking to Chase, Capital One, Wells Fargo, and the United States Bank, but major key details “remain in black” and the technical details still need to be worked out.
Person-to-person services are specifically used for personal payments and are very useful for things like paying back a product or splitting a rent payment like Venmo and Square Cash. With Apple’s new system, iPhone and iPad owners could probably use Apple Pay to send secure payments to one another from a checking account.
For now, “It isn’t clear how Apple intends to make money from the service. Indeed, the company may view a person-to-person offering mostly as a way to get more consumers to convert to its phones.
Under the current discussions, Apple wouldn’t charge the banks for participating in its person-to-person payment service, said the person familiar with the talks. That is different from Apple Pay in which the banks pay Apple for each transaction”
Launch date timeframe for the new mobile payment service is unclear at the moment, but Apple may be targeting a 2016 debut.