Mobile P2P from Apple? You’ll need the banks for that

 In News

Apple is reportedly in discussions with major U.S. banks to develop a mobile person-to-person payments service similar to PayPal’s Venmo service and Square Cash, according to a report from the Wall Street Journal.

Apple plans to launch the service next year, according to the report.

The banks themselves have developed and promoted a P2P service called clearXchange, which is open to anyone with a U.S. bank account. Bank of America, Captial One, JPMorgan, US Bank and Wells Fargo own the network.

The Wall Street Journal said it is unclear whether Apple and any of the banks have an agreement in place for the service, or at what cost. The banks are paying Apple for card payments initiated with Apple Pay. Jeffries & Company reported last year the rate is 15 basis points per credit tap and a half cent per debit tap.

Earlier this year, Apple Pay Vice President Jennifer Bailley said the company wanted a bigger piece of the payments market. A P2P service would fulfill that desire and become an additional revenue stream for Apple.

The New York Times noted that Square Cash has processed more than $1 billion in funds transfers since it debuted two years ago while Venmo processed $2.4 billion in payments last year.

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