Apple Reportedly Developing Person-to-Person Payment Service To Challenge Venmo

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Apple Inc. may wish to launch a person-to-person money-transfer service to rival Venmo, according to a new report.

Apple's plan to build its own cash transfer service in the vein of Venmo appears to be back on track.

ReCode is a solid source too.

Rumors have been floating around about an Apple Money-transfer service since 2015; now it seems the company is making another push in the space.

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Apple will announce the new service later this year, one source told Recode, while another told the website an announcement and launch date may not yet be set. In particular, JPMorgan Chase's (JPM - Free Report) QuickPay service is a popular option, and processed over $28 billion in transfers past year. Apple, of course, would like all iPhone (and now MacBook) users to opt for Apple Pay over pulling out their wallets, and by adding peer-to-peer functionality, it could see increased growth in overall Apple Pay usage.

Apple Cash would fill a similar role as Venmo. Reports coming in from various quarters suggest that the Cupertino giant could well facilitate peer to peer payments as early as this year itself.

This might result in a Visa debit card co-branded with Apple which will enable the company's users to even make purchases at retailers using their cards. That would typically put Apple Pay on better financial footing, but Venmo's parent PayPal already operates one of the largest and most profitable P2B platforms in the world. The report also mentioned that Apple was considering its own prepaid card that would run on Visa's debit network. If someone sends you money using Apple Pay, you could be able to use this balance using this card.

Systems like Samsung Pay and Apple Pay generally rely on near-field communications and hardware to process payments. The Wall Street Journal reported Apple analyst Gene Munster estimates Apple Pay saw around $36 billion in transactions during 2016.