Re/code reports that Apple has recently held discussions with its partners from the payment industry to introduce its own peer-to-peer mobile payment system. The service will likely be called “Apple Cash” and Apple is expected to announce the service later this year.
However, Apple’s plans are still tentative in nature and the service might just be scrapped altogether as well.
Apple Cash will allow iPhone owners to easily and securely send payments to other iPhone owners. If the service is launched, Apple will not be charging customers any money for transferring money to other. This will thereby help in users adopting the service.
The company has recently held discussions with payments industry partners about introducing its own Venmo competitor, according to multiple sources familiar with the talks. The service would allow iPhone owners to send money digitally to other iPhone owners, these people said.
Apple had previously held talks with banks about launching such a service in 2015 but its plans did not materialise back then.
Apple has also had discussions with Visa on launching its own prepaid cards that will be linked to its peer-to-peer service. These prepaid cards would allow users to spend them received by them without having to wait for the money to first arrive in their bank account. These cards can also be added to Apple Pay thereby allowing them to be used in retail stores where Apple Pay is supported.
Some banks, however, are not too happy with the idea of Apple launching their own prepaid cards. It’s possible that they could pressurise Visa to stop helping Apple.
The potential of Apple getting its own debit card, however, is not sitting well with some bank executives, sources told Recode. Some plan to raise their concerns with Visa next week during an annual summit that the credit card company is hosting for its bank partners.
Recode’s sources from inside the US banks claim that Apple Pay usage has been lower than what was expected when the service first launched in 2015. Apple Pay continues to be the most popular mobile payment service, though its limited availability across the globe has hampered its popularity.