WSJ: Apple to launch competitor to PayPal in 2016

WSJ: Apple to launch competitor to PayPal in 2016
With a large percentage of the U.S. public paying each other with PayPal, Apple sees a huge opportunity in the so-called P2P, or Peer-to-Peer mobile payments market. According to The Wall Street Journal, the tech titan is currently meeting with banks like JP Morgan Chase, Wells Fargo, Capital One Financial and U.S. Bancorp to start a similar service that would be available to Apple users in 2016.

Besides PayPal, which is owned by eBay, other P2P money transfer firms include Venmo, Square and Google. With PayPal, users install an app on their phone and transfer money by entering the recipient's phone number or email address. The funds can come from a funded PayPal account, a checking account linked to the PayPal user, or from a credit card.

While Apple CEO Tim Cook said in Ireland today that Apple does not want to be a bank, it is expanding the Apple Pay mobile payment service. The P2P service could be folded into Apple Pay. However it does it, Apple would be entering the market late. When Google introduced Android Pay this year, it turned Google Wallet into a Peer-to-Peer payment service which has been operational for a few months. One way Apple could quickly get up to speed would be to connect to an existing service used by banks. This service, clearXchange, can transfer money through an email address or cellphone number.

Unlike Apple Pay, the banks involved in Apple's P2P service would not be charged by Apple for participating in transactions. Instead of using the money transfer business as a profit center, Apple could launch it as another way to keep iPhone users attached to their handset. 


source: WallStreetJournal

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46 Comments

1. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

Jesus!!! Apple going to overtake PayPal too? I think everything will have an apple alternative sooner before we know it.

6. AlikMalix unregistered

I don't think we need another PayPal. Don't see this taking off.

22. Scott93274

Posts: 6033; Member since: Aug 06, 2013

Apple can't think for itself now that Steve Jobs passed. Now they're taking queues from another visionary Elon Musk, who founded both PayPal & Tesla, both of which Apple seems interested in competing with. Next we'll hear about their interest in both space flight, solar panels.

24. AlikMalix unregistered

Maybe so, but do you see others coming up with a new revolutionary product to the masses? I do like 3D Touch and a few other items. But nothing came out as revolutionary as the first iPhone from anyone company yet. There are tried and curious products - but they haven't changed anything - just half working concepts - I'm talking about googles self driving car that looks like a koala bear - it's good, but it's revolutionizing how we drive.

25. Scott93274

Posts: 6033; Member since: Aug 06, 2013

Ha ha ha! It does look like a Koala. Yeah, I'm seeing lots of exciting concepts the past couple years.... but nothing consumer ready.... Oh well.

26. AlikMalix unregistered

*not... as in NOT revolutionizing how we drive. (Too late to edit)

33. tedkord

Posts: 17357; Member since: Jun 17, 2009

It's not revolutionizing how we drive because we can't drive it yet. You can't expect a product to prompt revolution before it's released. It's revolutionary enough that Apple is (once again) copying the idea.

39. Scott93274

Posts: 6033; Member since: Aug 06, 2013

I think I'm going to have to side with tedkord, The light bulb didn't change the world until it was made available to the public, same thing with the first automobile, cellular phone, television, so on and so fourth. With Google's car we can potentially see a change in insurance policies, the end of traffic jams, a drop in fatal accidents, It can potentially change the basic public opinion on the need for vehicle ownership. Who knows what to expect if an automated car system becomes widely adopted by society. Wait for it to come to market before you pass judgement on something.

41. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

I think you guys are giving a lot of credit to these self driving cars. In perfect conditions they'll probably be fine. But once you have ice, snow, non paved roads, animals on the road, etc, I don't think things will be as great as you're imagining. A computer has better speed and reflexes, but what it doesn't have is judgement. Even with AI, it may have judgement, but it won't have any morals, say swerve and kill yourself to save a child. I just don't see it happening myself. It's a nice theory and all, but I'm not on board.

42. Scott93274

Posts: 6033; Member since: Aug 06, 2013

I'm very excited to see how well the whole automated car thing pans out but that doesn't mean I'm not concerned with potential issues, especially for issues like how the car will respond to floods, earthquakes, tornadoes, wildfire, and the million other variables that the software developers simply cannot account for due to infinite possibilities. All of this doesn't mean that I can't be excited for advancement in tech.

44. AlikMalix unregistered

Well here's my point: It's one thing to develop (or try to develops) a self driving car. But it's another to insure that you don't just build a car but also the infrastructure around our society: roads, laws, availability, third party support, repair facilities, etc. and this is where Apple shines. Look at the past. Apple didn't just slap an NFC chip and called it apple pay. They got banks and merchants involved, app developers, and working to expend outside the US, also made sure the security hardware behind it was in full use for a year like the FP sensor before including Apple Pay on phones to make sure all the knots are worked out. This is why mobile pay is revolutionizing today and not two years ago when Google wallet was released. And look at now: Samsung pay, rebuilt android pay, I'm sure more at coming. Same thing with apps - before App Store you can purchase and download manufacturer curated apps for their phones that were so few - "app" as a word wasn't something we used like we do today. Today we have a huge market for apps that are not just developed by phone manufacturer for their own phones - but by anyone with a little programming knowledge and sold to anyone in the world - and we love it. It all started with App Store (googles app depository, android market, came about a year later, then Amazon, Samsung, and so on). Please don't confuse this with fanboy drivel and start pointing out android trends like larger screen phones and all. I know all about them. But my money is on Apple to give us the next product that will change how we do something like driving, living, or who knows some weird thing in medical field.

49. Scott93274

Posts: 6033; Member since: Aug 06, 2013

Well I disagree with your opinion on where the next industry changing innovation is going to be coming from. Personally, I feel Project Fi really has the potential to change how carriers/wireless service providers work. Customers pay a low monthly fee and that fee is distributed proportionally to the carriers whose cell towers provide the strongest signal, When Google decides to open the service up to non nexus devices, and drops the invite requirement, the impact could shake things up for the entire industry on a global scale, forcing stubborn companies like AT&T and Verizon to accommodate the new business model or become irrelevant like the Block Busters and Hollywood Videos did before Netflix came along. Look how Google Fiber has prompted AT&T and Comcast to start offering the general consumer Fiber Optic internet for comparable prices only after Google started up their internet service. Google Fiber is growing at a very slow rate because they have to build their own network infrastructure for each city, Project Fi's network is massive and been in service for years and years.

2. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

5. cnour

Posts: 2305; Member since: Sep 11, 2014

The end of PayPal is soon.

7. meanestgenius

Posts: 22067; Member since: May 28, 2014

Said no one ever.

13. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

Oh my god! Seriously enough already! Apple is not all powerful and doesn't spell doom to competitors in every arena they enter. For instance, Apple TV, the PC market, and more I'm sure if I decided to look. It's just scary that supposedly reasonable people turn into gushing fangirls whenever Apple's name is mentioned. I'm starting to worry that the Twilight fangirls are more objective than people like you. I'm not saying they aren't successful, but give it a rest already. If you ever wonder why non Apple fans called the iPhone the Jesus phone, it's because of how some of you seem to see it and Apple as omnipotent, and sorry, they're really not.

38. ibend

Posts: 6747; Member since: Sep 30, 2014

they spell doom to their own partner, like sapphire screen manufacturer that went bankrupt, and 3D touch supplier that get tiny profit

34. tedkord

Posts: 17357; Member since: Jun 17, 2009

Sure. Just like the end of Android, the end of other smartwatches, the end of Spotify...we keep hearing that Apple is going to end all these products and services with their offerings, yet it never seems to happen.

43. TSMan2

Posts: 363; Member since: Aug 20, 2015

We must understand Apple, though. They are losing every single war in the real tech field . So, nothing strange they to be desperate to search some other ways to keep up with the stock. Right?

48. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

PayPal is the top online merchant service. PayPal process more online transactions than Visa or Mastercard or American Express do directly. PayPal even has their own debit and credit card. Does Apple? No!

8. TheWeasel

Posts: 403; Member since: Dec 26, 2014

I really dislike how Apple is dipping their hands in so many things now, knowing that their popularity and hordes of followers will give them an edge. I hope Apple's greed will stop very soon.

15. TerryTerius unregistered

I really don't see the harm if they're being competitive in multiple fields. Be it Apple, Google, Microsoft, or anyone else, competition is good. If they want to diversify into different services and product categories, so what? Google (alphabet) is in FAR more product categories than Apple, the difference being Apple is focused almost solely on what's the most profitable whereas Google is more interested in creating the future. And you're starting from a false premise. Apple does tend to have very high profit margins, but it's not like they own the categories they're in, not even close. They don't have anything close to an impermeable monopoly in smartphones, desktops, laptops, tablets, music streaming or wearables.

36. TheWeasel

Posts: 403; Member since: Dec 26, 2014

I wouldn't mind healthy competition, but many times Apple will not be reasonable with what they offer or how much they ask for it. Even worse, what I dislike most are the types of fans the company tends to make, firstly supporting without question these practices, and secondly obnoxiously claiming their company's service or product is automatically best without giving much valid reason, and putting down the competition, much like Apple themselves. And all I meant was that, when they enter a new field, mobile payment, music streaming, they already have a head start in the form of many devoted or loyal followers who will support it without question. They don't own any of those categories, of course, but they can very well have a large influence, and not always a good one.

50. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

What are they to do when the iPhone no longer pays the bills?

9. meanestgenius

Posts: 22067; Member since: May 28, 2014

Apple has both the money and the fanbase to get people onboard with this, but I really do not see this overtaking PayPal.

10. AlikMalix unregistered

I actually agree. PayPal is a household brand now. It's like Google and Facebook - too big to fail.

14. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

I don't think anything is too big to fail. Hell, look at Jared Fogle, he was a household name too, and look where he is now. All it takes is one misstep, one thoughtless statement, or a scandal involving privacy or finance, and anything can go tumbling down. That's why this whole untouchable attitude fanboys for Apple, Google, Microsoft, etc have just makes me laugh. Look back a few years at BlackBerry or Nokia, who would've thought back then that they'd be where they are now. And early on HTC was the king of the Android hill, and now look at them. Nothing lasts forever, period.

16. TerryTerius unregistered

It's kind of extreme to compare child molestation with a company possibly being out competed by another. Just saying. Especially since the company behind him is perfectly fine.

27. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

My point wasn't equating the two scenarios, just saying that sometimes all it takes is one thing to bring something seemingly unstoppable down. The same thing could've happened with Fogle if he were caught saying Subway's new sandwich tasted like crap. He'd be out on his ass just the same, although he wouldn't be looking at jail time. But there isn't a single entity that will last forever. That's just common sense, something lacking most fanatical people.

18. AlikMalix unregistered

I meant: fail in the face of competition (even if it's apple)... I actually dont think it's a good idea to dilute another paypal service into the mix when there's something that exists that's nearly a standard in internet payments... This is only going to confuse the consumer...

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