Apple is lining up a new person–to–person payment service, which would allow iPhone and iPad users to send each other money via their devices.
Sources have told the Wall Street Journal that Apple is in talks with major banks in the United States about launching the service, which would go head–to–head with rival platforms such as Paypal’s Venom and Square Cash by Square.
While details remain unclear, it seems likely that Apple will make this new offering part of its wider Apple Pay service. At the moment, the Touch ID-backed mobile payments app allows iPhone owners to pay for goods online or make secure contactless payments.
Interestingly, Apple will not be demanding that banks pay money to them every time a transaction is made, which is a key part of the current Apple Pay package.
Instead, say sources, the payment system will be a way to entice consumers to switch to the iPhone from Android and Windows Phone.
In practice, a person–to–person payment would be ideal for those who don’t want to withdraw cash to cover incidental costs, such as on a night out.