Apple May Launch a Venmo Competitor Square, Facebook and Google have also entered the peer-to-peer payments space.

By Laura Entis

Opinions expressed by Entrepreneur contributors are their own.

Pexels

Apple is in discussion with U.S. banks to launch a peer-to-peer mobile payment feature that would put the technology giant in direct competition with PayPal's Venmo platform, according to a report in The Wall Street Journal.

These types of services have been relatively slow to take off -- less than 20 percent of U.S. adults report using their mobile devices to make at least one payment a week – but the space is heating up. In addition to Venmo, Square, Facebook and Google all offer peer-to-peer payment services. And while far from mainstream, a growing number of Americans – particularly millennials – are using these services in lieu of cash and checks to pay for everyday expenses.

It isn't directly clear how Apple will make money from the payment feature, but as the Journal notes peer-to-peer payment services help technology companies ensure they are a central part of users' lives. Another upside: the service gives them access to consumers' financial information, which can help inform the development of future products.

According to the report, Apple has had conversations with JPMorgan, Capital One, U.S. Bancorp and Wells Fargo. It's unclear what stage of negotiations the technology company is at, but a person familiar with the matter told the Journal a launch could "get off the ground next year."

Related: Square IPO to Value Company at $4.2 Billion

Laura Entis is a reporter for Fortune.com's Venture section.

Editor's Pick

Related Topics

Health & Wellness

Need More Rest? Try the Bedtimes of These Highly Successful People

You'll be surprised — not everyone works crazy hours.

Collaboration

This Is the Unseen Advantage Your Small Business Might Need

If you're ready to learn how to help your business increase revenue, access new markets, create better customer experiences and brand awareness, strategic alliances may be the answer you're looking for.

Business Solutions

Apply for Jobs Faster with This AI Resume Builder for Cyber Monday

Regularly $468, you can get it now for just $29.97.

Thought Leaders

Sarah Jessica Parker Uncorks Secrets to Wine Brand Success in Her Latest Entrepreneurial Venture

Parker shares how she's created a celebrity brand that's resonating with critics.

Starting a Business

He Co-Founded a Company with Tony Robbins and Peter Diamandis. Here's His Advice for Finding the Best Partners

Lifeforce co-founder Dugal Bain-Kim on the art of building powerful partnerships.

Business Plans

She Wrote An 'Escape Plan' to Quit Her Job and Move to an Island. Now She's There Generating Nearly $300,000 A Year

"My detailed, step-by-step plan on how I would quit my job and move to a Caribbean island."