Apple is in talks with U.S. banks to develop a service, similar to Paypal's Venmo, that would allow consumers to "zap" payments from their checking accounts to recipients through their Apple devices, The Wall Street Journal reported.
Apple declined CNBC's request for comment.
The move comes as the tech giant's existing mobile payment application, Apple Pay, is expanding. After launching earlier this year, it has moved to drugstores, and more recently, to restaurants like Starbucks, KFC and Chili's, NBC News reported.
A new peer-to-peer service would expand users' ability to make mobile credit and debit card payments to not just businesses, but also other individuals, the Journal said.
PayPal, freshly spun off from eBay, has had long-standing bets on mobile payments. It acquired Braintree and Venmo in 2013.
While declining to comment on the Apple reports specifically, PayPal representatives told CNBC,"We welcome any development that encourages people to address the awkwardness of dealing with cash when paying friends or family back. We have multiple services to make that easy including both PayPal and Venmo. Our services work across multiple devices and Operating Systems, as well as online."