Apple to launch P2P payments and debit card this year?

A long-lasting rumor has suggested that Apple is interested in creating a money transferring service through its smartphones. The new service could launch as early as this year, but the timing details aren't clear, the report says.

Apple Pay on the Web. Apple has reportedly held talks with Visa for a prepaid debit card service which would be tied to peer-to-peer payment transfers.

On that note, the publication points out that this new venture may not yield the kind of results that Apple is looking for. It would work with the new P2P service by allowing those wired funds from an iPhone user to have access to that money instantly, instead of waiting for the money to hit the user's bank account. The card number could also be used to make purchases on websites and in apps. According to Recode, Apple has been talking with its partners to revamp its Apple Pay system to secure its lead in mobile payments. With this app, the user can easily split the bill, pay the cab, or much more.

As Recode reports, Apple has recently brought up the idea in discussions with others in the payment industry and is attempting to figure out when an announcement might come.

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These services have typically been money losers for the new entrants in the space, but are seen as the gateway to the next generation of payment and personal finance services.

Competition in this area is high, and it continues to go up. Meanwhile, there are still costs associated with facilitating those payments. However, not all consumers are willing to use it and pay a fee just to send a friend $3. Would it use rewards program to encourage them to use it and ditch their debit card? PayPal's Venmo followed with $17.6 billion in transactions.

Apple Pay launched in October 2014 in an attempt to capture a chunk of that business. The move also could give Apple a position in a rapidly growing market, one that could reach $86 billion in transactions in the United States alone by 2018. In other words, Apple Pay wants to become Venmo before Venmo can become Apple Pay.

  • Toni Ryan