The tech giant is in talks with a number of US banks about developing a new service that would allow people to send money to each other using iPhones, according to reports from the Wall Street Journal.
The newspaper cites sources familiar with the matter as saying that the talks with the banks are ongoing but it is not yet clear whether any of them have actually entered into an agreement with the company. Crucial details including the technical factors such as how the service would be integrated into the financial institutions’ existing infrastructures have yet to be nailed down.
Apple’s first foray into the payments market with Apple Pay has had an underwhelming first year in the US, leading to Tim Cook’s pronouncement that this year would be “the year of Apple Pay” to be ridiculed. Despite continuing to win over people, the service’s growth has stagnated, according to research.
Although it’s unclear how Apple would make money from the service, it is a clear indication of the company’s attempt to consolidate its user base as well as appeal to new customers by diversifying its offered services to include ones that cater to people’s everyday financial needs. It is likely that the mP2P service would work with Apple Pay, which already stores the users’ card information and lets them to make payments.
Whilst the launch of the service won’t happen in the short-term, one source said that it could be rolled out sometime next year.
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The American tech giant has launched its mobile payment service, Apple Pay, in Spain, partnering with Mastercard, Carrefour and American Express.
Payment terminals have stayed the same over the last 10 years, with steady advances in contactless and mobile wallet transactions. Retailers and brands are making a conscious effort to get closer to consumers.
ING has announced that it is scrapping Twyp, its peer-to-peer payments app, in the Netherlands following negative feedback from its customers.
Stripe, the biggest fintech company in the US, is about to consolidate its position at the top by almost doubling its valuation to $9.2 billion following Series D funding.