According to various media in the US, Apple is in talks with several banks to launch a Mobile Person-to-Person payment services. The news sent Apple shares higher in Thursday trading. Apple shares rose 0.3% following the reports of the release of the payment app.
If true, the app will allow users to send money to each other using their iPhones. The report, published in the Wall Street Journal, affirms that Apple may be talking to Chase, Capital One, Wells Fargo, and U.S. Bank.
The application, that would allow iPhone users to transfer money via text, would help pit Apple against PayPal, that has until now owned the lucrative market. PayPal's app called Venmo allows users in the US to send and request money from each other via their phones.
Apple's shares reached rose to $116.81 on Thursday, whereas PayPal shares were down 2.5%. Another similar service is Square Cash.
Apple's Mobile Person-to-Person payment services would be addition to Apple Pay, launched in 2014, to allow users to make payments at certain stores using their iPhones. Apple's new services would allow users to transfer money.
Approximate launch date for the service is yet to be known.