WSJ : Apple In Talks With U.S. Banks On Person-to-person Payment Service

(RTTNews) - Apple Inc. (AAPL) is in discussions with U.S. banks to develop a payment service that would let users zap money to one another from their phones rather than relying on cash or checks, the Wall Street Journal reported citing people familiar with the matter

The report said the talks with banks are continuing and it is unclear if any of the firms have struck an agreement with Apple. Key details remain in flux, including technical aspects that would determine how the service would tie into the banking industry's existing infrastructure.

If Apple's plans go forward, the service would likely be similar to PayPal Holdings Inc.'s Venmo platform, which is popular among younger consumers to do things such as pitch in on gifts and share rent payments with roommates.

It isn't clear how Apple will make money on the service, but the move is another effort by the firm to tighten its hold on customers by getting them to use their iPhones for everyday needs, including financial services.

The Apple service under consideration would allow consumers to send payments from their checking accounts to recipients through their Apple devices. It would likely be linked to the company's Apple Pay system, which allows customers to make credit-card and debit-card payments with mobile phones.

A launch isn't imminent, but the report said such a service could get off the ground next year. This year, Apple was granted a U.S. patent for an encrypted person-to-person payment system using electronic devices that communicate wirelessly.

Apple has been talking with a number of banks about the service, including J.P. Morgan Chase & Co., Capital One Financial Corp., Wells Fargo & Co. and U.S. Bancorp, the report noted.