Apple Inc. is striving to get in to the niche market of person-to-person transfer of money through their phones. According to people familiar with the matter, Apple is in discussions with U.S. banks to develop the payment service that would let users zap money to one another from their phones rather than relying on cash or checks.
After the move, Apple, one of the largest IT companies in the world, would join the league of a competitive market where an increasing number of Silicon Valley firms and a host of other IT firms trying to persuade Americans and other users around the world to ditch their wallets in favor of digital options.
The trend of electronic payment for small transactions has already caught the fancy of a small but growing number of users across the world who are increasingly using the electronic mode of money payment for services such a paying baby sitters, splitting dinner checks and sharing other bills.
While it is unclear if any of the firms have struck an agreement with Apple, reports say that the talks with banks are continuing. There is yet no detailed information about issues like technical aspects that would determine how the service would tie into the banking industry’s existing infrastructure, the sources said.
The service that Apple is targeting to provide would be similar to PayPal Holding Inc’s Venmo platform. This is platform that allows consumers to do things such as pitch in on gifts and share rent payments with roommates.
The banks are also interested in participating in such ventures, according to sources, for their own benefits. Sources said that the banks are of the view that a shift away from cash and checks towards electronic payments would be less costly more efficient for the banks and more convenient for customers.
The method of payment on these platforms are similar to the most popular ways people send money to friends and pay service providers such as handymen.
If apple has its way, then users of communication Apple gadgets would be able to send payments from their checking accounts to recipients through their Apple devices. The Apple Pay system that allows customers to make credit-card and debit-card payments with mobile phones would probably be the platform that this new service would be linked to.
While there are no talks about a launch of the service, people knowledgeable of the matter said that such a service could get off the ground next year. Apple secured a U.S. patent for an encrypted person-to-person payment system using electronic devices that communicate wirelessly earlier this year.
Sources said that Apple hopes to rope in banks like J.P. Morgan Chase & co., Capital One Financial Corp., Wells Fargo & Co. and and U.S. Bancorp and are in talks with them.
People using the person-to-person services to send money to friends or others via an app on cellphones use the recipients’ phone number or email address. Even though the providers charge for certain transactions such as when a payment is funded from a credit card rather than a checking account, the transfers are generally free.
(Source:www.forbes.com)
After the move, Apple, one of the largest IT companies in the world, would join the league of a competitive market where an increasing number of Silicon Valley firms and a host of other IT firms trying to persuade Americans and other users around the world to ditch their wallets in favor of digital options.
The trend of electronic payment for small transactions has already caught the fancy of a small but growing number of users across the world who are increasingly using the electronic mode of money payment for services such a paying baby sitters, splitting dinner checks and sharing other bills.
While it is unclear if any of the firms have struck an agreement with Apple, reports say that the talks with banks are continuing. There is yet no detailed information about issues like technical aspects that would determine how the service would tie into the banking industry’s existing infrastructure, the sources said.
The service that Apple is targeting to provide would be similar to PayPal Holding Inc’s Venmo platform. This is platform that allows consumers to do things such as pitch in on gifts and share rent payments with roommates.
The banks are also interested in participating in such ventures, according to sources, for their own benefits. Sources said that the banks are of the view that a shift away from cash and checks towards electronic payments would be less costly more efficient for the banks and more convenient for customers.
The method of payment on these platforms are similar to the most popular ways people send money to friends and pay service providers such as handymen.
If apple has its way, then users of communication Apple gadgets would be able to send payments from their checking accounts to recipients through their Apple devices. The Apple Pay system that allows customers to make credit-card and debit-card payments with mobile phones would probably be the platform that this new service would be linked to.
While there are no talks about a launch of the service, people knowledgeable of the matter said that such a service could get off the ground next year. Apple secured a U.S. patent for an encrypted person-to-person payment system using electronic devices that communicate wirelessly earlier this year.
Sources said that Apple hopes to rope in banks like J.P. Morgan Chase & co., Capital One Financial Corp., Wells Fargo & Co. and and U.S. Bancorp and are in talks with them.
People using the person-to-person services to send money to friends or others via an app on cellphones use the recipients’ phone number or email address. Even though the providers charge for certain transactions such as when a payment is funded from a credit card rather than a checking account, the transfers are generally free.
(Source:www.forbes.com)
