Is Apple working on a mobile P2P payment service?

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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