Apple to lauch new money transfer app

Apple is rumoured to be in discussions with

banks to set up a new money transfer app that

would put it in direct competition with PayPal.

The application would allow iPhone users

to transfer money via text, the Wall Street Journal

said.

PayPal shares were down 2% on the news.

Paypal's peer to peer lending app Venmo processed

$2.4 billion in payments in 2014. Apple could be

hoping to capture a share of that, as the market for

mobile money transfers grows.

Peer to peer payment apps are seen as a convenient

way to repay individuals digitally rather than in cash.

Venmo has already carved out a niche among

younger consumers in the US, allowing users to send

and request money from each other via their

phones. It has become popular for splitting the costs

of meals, taxis and gifts.

Apple launched Apple Pay in the US last year, and in

the UK earlier this year. It allows users to make

payments at certain stores via a tap of their iPhones.

This latest step would allow users to transfer money,

not just make payments.