Apple is working on a person-to-person payments service that may put it in direct competition with PayPal.
The company is in talks with banks about the new service, which would let iPhone users use their smartphones to transfer money to one another as easily as they send messages. The service, which could be ready next year, would compete with PayPal’s peer-to-peer payments app Venmo, and Square’s Square Cash.
In 2014, Venmo processed $2.4 billion in payments. As the market for mobile money transfers grows, Apple could be hoping to capture a share of that.
Peer to peer payment apps are appreciated as a convenient way to repay money digitally, rather than in cash. Venmo has already craved out a niche among younger consumers in the US. It has become popular for splitting the costs of meals, taxis and gifts.
Apple launched Apple Pay in the US last year, and in the UK earlier this year. It allows users to make payments at certain stores via a tap of their iPhones. This latest step would allow users to transfer money, not just make payments.
