Apple is looking like it intends to catch up in the world of mobile payments. The company is supposedly in discussions with banks in the US to deploy a service that would allow users to send money to each other using only their iPhones.
The Wall Street Journal is yet again quoting sources close to the issue, saying that Apple has met with banks to discuss the matter. However, it is unclear if an agreement was struck; or how the technical aspects of the system would work with the banks. Presumably, it would tie in with the recently launched Apple Pay service in some way.
Apple isn’t quite the first company to be working on peer-to-peer money transfers. PayPal already has a service that allows people to split bills and share rent, while Google Wallet serves a similar function by allowing individuals to transfer funds among themselves.
Interestingly, the WSJ does not believe that Apple will be making money out of the service. This likely means that there will be no fees for transferring funds, which is what PayPal and Google Wallet do to earn a profit. How – or if – Apple will increase revenue through the service is a complete mystery. Of course, the ultimate goal could be to further lock people into the Apple infrastructure.
[Source: The Wall Street Journal]