Thus, iPhone users will be able to spend money sent to these Apple cards via "Apple Cash", without waiting for the transfer to be processed. Today, word surfaced about meetings that Apple has held with firms in this industry about starting up its own money transfer system.
The credit card may only be in digital format, and the user will need to add it to the Apple Pay service or use it through e-shops. One source suggested that Apple's new service could launch later this year, but another suggested that a launch date hasn't yet been set.
The merchant angle is probably making Apple nervous, since it's failed to reach a critical mass with its Apple Pay service, more than two years after launch. The said debit cards will join into an unannounced service that would allow all iPhone users to send and receive money to each iPhone users digitally.
Systems like Samsung Pay and Apple Pay generally rely on near-field communications and hardware to process payments. It will have all the money transfer features along with the money storage aspect that Apple Pay didn't have. In 2015, it held talks with banks about implementing a similar service but the plans fell through. If this new round of discussions actually ends up with a real service, it would put Apple in direct competition with industry behemoths like PayPal, Square Cash, and QuickPay.
A digital debit card would be tied to their smartphones Apple Pay digital wallet. In the first quarter of 2017, Venmo processed a record $6.8 billion in the first quarter, double the amount from the same period a year ago.
Apple and Visa spokespeople declined to comment.
Apple would approach money transfers a little differently from existing services, Recode reported. The company is reportedly looking to address this by partnering up with Visa for a pre-paid card.
Apple has a financial incentive for the card as well.