Apple Reportedly to Compete With PayPal's Venmo in Mobile-to-Mobile Payments Space

Apple, which is closing in on its one-year anniversary of Apple Pay, a mobile consumer-to-merchant system, wants to jump into the mobile person-to-person payment space, a spot now dominated by PayPal’s Venmo platform, according to a report from the Wall Street Journal.
Venmo has been gaining in popularity, primarily because its easy to use and its newsfeed transforms payments into a sort of mobile social network.

Apple isn’t about to get left out of this arena. The Journal reports that Apple is in talks with U.S. banks about creating its own mobile-to-mobile payments service. The app would allow people to send payments to each other directly from their phones. The money would automatically be transferred between checking accounts. Some big banks, such as JPMorgan Chase, already have this feature. Chase Pay, for example, is utilized primarily by family members or friends who have Chase accounts.
Venmo, and possibly Apple in the near future, supports payments between accounts at different banks, requiring agreements with the biggest financial institutions. The Journal reports that Apple has been talking to a host of banks, including JPMorgan Chase, Wells Fargo, Capital One, and U.S. Bancorp.
The talks are ongoing, and there isn’t any clear launch date for the service. However, it could launch as soon as next year.
The person-to-person service would likely be connected to the company’s Apple Pay system, which allows consumers to make credit-card and debit-card payments with their iPhones.
In addition to PayPal’s Venmo, person-to-person payments are also offered by Google, Square and Facebook.

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