Apple reportedly in talks to launch money-transfer service

Apple Venmo competitor

Services Image Source Jeff Chiu AP REX Shutterstock

The company has recently held discussions with payments industry partners about introducing its own Venmo competitor, according to multiple sources familiar with the talks. If someone sends you money using Apple Pay, you could be able to use this balance using this card. Sources speaking with Recode told the publication they expect the company to announce the new service later this year, although of course they warned that plans can still change. Apple is said to be in talks with Visa to offer its own pre-paid cards, which would presumably be used within Apple Pay as a solution for folks who don't have a bank account.

Apple Cash would fill a similar role as Venmo.

Rumors about a peer-to-peer money transfer service emerged in 2015 after Apple started talking to banks (JPMorgan Chase, US Bancorp, Wells Fargo and Capital One) about a money feature. Apple Pay is now accepted by over 2,000 banks, worldwide. PayPal's Venmo followed with $17.6 billion in transactions.

In a bid to potentially boost its Services business and strengthen its ecosystem, Apple (AAPL) may further strengthen its role in mobile payments, potentially going after Venmo in the process. The card could also be added to your Apple Pay wallet to pay for goods at stores and on websites. Facebook and Google already have money-transfer options built into messaging services like Messenger and Gmail, respectively. The report also mentioned that Apple was considering its own prepaid card that would run on Visa's debit network. According to Piper Jaffray analyst, Gene Munster, Apple Pay processed as much as $36 billion in mobile payments previous year, despite falling short of estimates. Apple Pay on the Web is delivering our partners great results. In most cases, they've generally found minimal upsides to using a smartphone to make payments versus a traditional credit card or debit card.

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