Its existing means of money transfer in Apple Pay has been decidedly underwhelming in terms of usage. The company is in the process of rolling out its P2B offerings like Pay with Venmo, which allows merchants to accept Venmo on their sites and apps. Apple Pay was launched in 2014 as a way to let shoppers load their credit card and debit card information onto their iPhones in the form of "mobile wallets".
The new service is expected later this year, although some Apple deep throats have warned that the company still has not made up its mind. NFCWorld reported in February that Apple Pay was at the top in the US for retailer adoption at 36% (up from 16% the previous year), followed closely by PayPal and then Mastercard Inc's (NYSE:MA) Mastercard PayPass.
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.
Apple had previously had discussions with banks about such a service back in 2015, although nothing ever materialized. Those in the know say that Apple could officially unveil this new payment service some time later this year, allowing Apple to compete with others in the industry such as Pay Pal, Square Cash and Chase's Quick Pay. The company announced Thursday that the amount of money flowing through the Venmo doubled in the first quarter, reaching $6.8 billion.
Apple is working on a service that could compete with Venmo
Apple declined to comment.
The service would compete with the likes of Venmo and Square Cash, as well as offerings from big USA banks. Baked into iMessage, people might just find a use for Apple Pay. That would typically put Apple Pay on better financial footing, but Venmo's parent PayPal already operates one of the largest and most profitable P2B platforms in the world. Ideally, the cards would only work where Apple Pay is accepted.
But some bank executives are reportedly wary, and plan to complain at a Visa "summit" next week, according to Recode's Jason Del Rey.