Apple is working on a service that could compete with Venmo

Randall Craig
April 28, 2017

Launching a peer-to-peer payment service and offering a debit card could turn Apple's luck around... providing the banks don't step in to stop Apple from competing with them.

Apple has been long rumored to be interested in developing a P-to-P service of its own, which isn't surprising given the company's popularity among Millennials, who are prime users of PayPal's popular Venmo mobile P-to-P service.

ReCode is a solid source too. At that time, Apple was said to be working with several US -based banks about the service, but nothing came of the talks. One source told Recode that the company plans to announce the service by the end of the year. Venmo, for instance, has already processed billions of dollars and the volume is doubling year after year. At the time it was suggested that Apple would offer peer payments through its proprietary messaging service, iMessage. The numbers alone are reason enough for Apple to step in the game, especially considering Venmo's results amid stiff competition. Reports coming in from various quarters suggest that the Cupertino giant could well facilitate peer to peer payments as early as this year itself.

Much like Venmo and its competitors, Apple's new service would enable iPhone users to transfer money to each other quickly using their mobile phones. According to the report, the company has been in talks with Visa to create a card that would be tied to the payments system. Apple hopes to boost that figure by allowing iPhone owners to easily send money digitally to other iPhone owners. Apple Pay is now accepted by over 2,000 banks, worldwide.

Systems like Samsung Pay and Apple Pay generally rely on near-field communications and hardware to process payments. Apple Pay on the Web is delivering our partners great results. They can make purchases using their Venmo account, but they can use it like cash - splitting restaurant bills between friends, paying their share of the rent, or sending money on someone's birthday.

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