Apple is reportedly working on a new mobile payment service to rival existing options such as PayPal, Venmo, Google Wallet and Facebook Messenger. According to CNBC, citing news from Dow Jones, Apple’s new payment system will allow users to send money directly to one another.
JUST IN: Apple in talks with U.S. banks to develop mobile person-to-person payment service, DJ reports; $PYPL drops nearly 2% on report.
— CNBC Now (@CNBCnow) November 11, 2015
It’s not immediately clear why Apple would want to enter this market, but CNBC says that it’s working directly with banks. Many of those banks, presumably, are already partners with Apple Pay, the company’s existing payment service that allows iPhone owners to make payments at retail checkout counters. If the new service takes advantage of NFC, it may allow users to pay one another with a quick tap of a phone. An element of security could be added with this method with Touch ID. Or it might, like other services, allow users to send money through a chat system, with options to withdraw or deposit money from linked bank accounts.
CNBC said Apple’s service “could launch in 2016.” We’ll keep an eye out for additional news on the topic. It would seem rather pointless for Apple to enter the crowded market if it can’t offer something unique.