Apple to Launch New Peer-to-Peer Payment Service Rivaling Venmo

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Apple in Talks with Banks to Launch Mobile Payments Service

According to a recent report from the Wall Street Journal, Apple is engaged in discussions with several major banks to launch a mobile payments service. This move would enable users to instantly transfer money between bank accounts using their Apple devices.

Competing with Venmo and Square

The new service, which could be launched as early as 2016, would directly compete with PayPal’s popular peer-to-peer payment platform, Venmo. Additionally, it would also rival Square’s own peer-to-peer offering, Square Cash. Both of these services have gained significant traction in the mobile payments space.

How Apple’s New Service Would Work

If launched, the new service would allow users to link their bank accounts with their Apple devices. This would enable instant money transfers between individuals, eliminating the need for cash or traditional payment methods. The service is expected to be compatible with Apple Pay, which was introduced last year and allows users to make payments using their iPhones and Apple Watches.

Negotiations with J.P. Morgan, Capital One, U.S. Bancorp, and Wells Fargo

The Wall Street Journal reports that J.P. Morgan, Capital One, U.S. Bancorp, and Wells Fargo have all had discussions with Apple regarding the potential new service. However, it remains unclear at what stage these negotiations are, and whether a launch is imminent.

Venmo Responds to Rumors

In response to the news, a spokesperson for Venmo told TechCrunch that "while we don’t comment on rumors or speculation, at PayPal, we welcome any development that encourages people to address the awkwardness of dealing with cash when paying friends or family back." The statement highlights Venmo’s focus on making peer-to-peer payments more convenient and accessible.

Competition in Mobile Payments Space Heating Up

The introduction of Apple’s new service would mark another significant entry into the mobile payments space, which is already crowded with competitors. Google and Facebook have recently entered this category, further increasing competition for existing players like PayPal, Venmo, and Square.

Market Reaction

PayPal shares declined by 2% following the news of Apple’s potential new service. The company has seen its market value fluctuate in recent times due to increased competition from other mobile payments platforms.

Apple Remains Silent on Rumors

Apple has declined to comment on the rumors surrounding its potential new service, leaving the tech industry waiting with bated breath for further updates.

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Topics

Apple
J.P. Morgan
Media & Entertainment
PayPal
Square
Venmo
Wells Fargo