Why Apple Might Copy Venmo
- Author: Fernando Stephens Apr 28, 2017,
Apr 28, 2017, 1:01
Apple Music obviously hasn't stopped Spotify from growing quickly, and an Apple-backed money transfer service wouldn't necessarily upend that market, either.
According to Recode, Apple has been in talks with payment processors and banks about a Venmo-like service for two years, but nothing has happened-yet. The Wall Street Journal previously reported that Apple was looking to launch person-to-person Apple Pay mobile payments past year, although obviously nothing came of it. Loup Ventures analyst Gene Munster estimates that Apple saw $36 billion in total Apple Pay transaction volume a year ago. With the card, someone could spend money sent to them on the service without having to wait for the bank to clear it. The card could also be added to your Apple Pay wallet to pay for goods at stores and on websites.
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Even with the potential lucrative benefits, Apple again might step back from a launch, as some within the company are cautioning that there hasn't been anything set in stone yet.
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 that could upend traditional consumer banking relationships.
Apple declined to comment on the story.
Apple Inc. may wish to launch a person-to-person money-transfer service to rival Venmo, according to a new report. Third-party apps that are popular among the masses are PayPal, PayPal-owned Venmo and Square Cash.
This isn't the first time we're hearing peer-to-peer payments from within Apple Pay launching.
And this Apple Cash service could be coming later this year.
The loss-inducing nature of P2P services is also why they make the most sense as a tangential service offered by larger companies, as opposed to stand-alone companies trying to squeeze blood from a stone.
A "Venmo" is a mobile payment service owned by PayPal.