Apple is working on a P2P money transfer service similar to Venmo, according to a report from Recode. Venmo is PayPal’s digital wallet that allows users to transfer funds out of their Venmo account, bank account or debit card.
The money transfer service would allow iPhone owners to send money digitally to other iPhone owners, stated the report citing people familiar with the matter. The service could likely be a feature for Apple Pay. Apple was also in talks with Visa Inc to create its own pre-paid cards to run on the Visa debit network, and tied to the new peer-to-peer service. This essentially means, a Apple branded digital card could be in works that will allow users to spend money transferred to them instantly, without the need for the funds to settle in a bank account.
One of the sources told Recode that Apple may announce its new payment service this year, while another noted that the launch date and announcement may not be set as of yet. The service, if launched, would compete with Square Inc’s Square Cash, as well as services from big banks.