Apple, Banks in Talks on Mobile Person-to-Person Payment Service
Apple is looking to dethrone PayPal's Venmo platform as the most prominent and easiest to use payment platform used by millennials. Apple is working with American banks, such as Chase, Wells Fargo and Capital One, to develop the service that would seamlessly allow users to "zap" money to one another through their phones, allowing users to forgo the use of cash or checks.
Much of the speculation on how Apple would make money off this service, launch date, and how the technical details would fit into banking's current infrastructure are still unclear but many see this as a way for Apple to grasp a firmer hold on their customers by relying on their iPhones for more "everyday needs." The article considers the service would run through the already existing Apple Pay. A patent was already granted this year to Apple "for an encrypted person to person payment system using electronic devices that communicate wirelessly."
Apple looks to take over the market share currently held by all the other mobile payment sharing programs, most notably, PayPal's Venmo, Square, Google Wallet and Facebook Messenger. In Q3, Venmo users alone had $2.1 billion in mobile payment transactions. Tim Cook, Apple's CEO, told Trinity College in Dublin recently that digital payment systems will become so prominent in the future "your kids will not know what cash is."
Apple Pay is currently available in the US and the UK, and they are currently working on an entry strategy into Canada and Australia.
With the adoption rate so popular among millennials along with the convenience of combining mobile and internet banking, I believe Tim Cook is correct in thinking this is the way of payment in the future and it's only a matter of time until it's offered globally.