It's rumored that these companies could be pressuring Visa against working with Apple - possibly delaying the related money-transfer service and contributing to Apple's indecision over when and how to launch the effort.
Apple Pay started as P2B and now wants to expand to P2P, while Venmo started as P2P and wants to expand to P2B. In addition, adoption rates for Apple Pay at major vendors can also vary and the service has also seen stiff competition from providers like Samsung Pay. As an extension of Apple Pay, Apple is reportedly looking to break into the peer-to-peer payment systems.
"Banks spent heavily in insuring their cards were top of wallet when they all built and rolled out Apple Pay", Cherian Abraham, a digital payments executive at Experian, told Recode. At that time, Apple was said to be working with several US -based banks about the service, but nothing came of the talks. Apple's money transfer service could give Apple Pay a boost, but only if users embrace the service in lieu of the other available options.
In Apple's proposed setup, according to the report, the company might issue users digital debit cards tied to the service: "People would be able to use the Apple cards to spend money sent to them through the new service, without having to wait for it to clear to their bank account".
This service would work between two iPhone users.
However, the service has struggled to make a significant impact on Apple's bottom line. Apple Pay on the Web is delivering our partners great results.
As of iOS 10, Apple lets third-party peer-to-peer payment apps offer iMessage and Siri app extensions to allow their apps to integrate more deeply with the rest of the operating system. If launched, the service would be a direct competitor to PayPal's Venmo app. The company has apparently been in talks with various payments industry partners and has been investigating the best way to go about introducing a payments service to the market.