Apple is working on its own Visa pre-paid debit cards -- and bank executives hate it

Tim Cook AppleDrew Angerer/Getty ImagesBob Iger, chief executive officer of The Walt Disney Company, walks with Tim Cook, chief executive officer of Apple Inc., as they attend the annual Allen & Company Sun Valley Conference, July 6, 2016 in Sun Valley, Idaho.

Apple has held talks with Visa about making its own pre-paid debit cards, Recode reported on Thursday.

The pre-paid debit cards would tie into an unannounced service that would allow iPhone users to send money to each other digitally.

But some bank executives are reportedly wary, and plan to complain at a Visa “summit” next week, according to Recode’s Jason Del Rey.

Apple has been rumoured to be working on a peer-to-peer money transfer service or app since 2015. If launched, the service would be a direct competitor to PayPal’s Venmo app.

A peer-to-peer service would matter to Apple because the company is looking to increase recurring revenue from selling services to its users.

Apple takes a slim cut, reportedly 0.15%, off purchases made with a credit card through its Apple Pay wallet service. But Apple Pay adoption has underwhelmed since it launched in 2014. Loup Ventures analyst Gene Munster estimates that Apple saw $US36 billion in total Apple Pay transaction volume last year.

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