CUPERTINO, Calif.–Apple has entered into discussions with some of the nation’s largest banks over development of a payment service that would allow for person-to-person payments.
According to the Wall Street Journal, the banks involved include J.P. Morgan Chase, Capital One, Wells Fargo and U.S. Bancorp.
The Journal’s analysis noted “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.”
It is unknown whether any formal agreements with any or all of the parties have been reached, according to the Wall Street Journal, or whether other institutions are involved. Numerous technical details still need to be worked out, including how such a P2P solution would connect with the banks’ existing infrastructure. The Wall Street Journal said the Apple service would likely be similar the Venmo platform from PayPal Holdings, which many younger consumers use to pitch in on gifts and to share rent payments with roommates.
Also uncertain is the revenue model.
According to The Wall Street Journal, 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 with Apple Pay.
There remains uncertainty around both the timing of the release and the revenue model. With Venmo, sending money is free when pulled from a linked bank account, but there is a 3% fee on credit cards and some debit cards. Receiving money through the Venmo app is free.