PayPal slides almost 2% on report Apple, banks will roll out rival

Apple working on mobile peer-to-peer payments: DJ

Shares of Internet payment company PayPal slid Wednesday afternoon, closing down 1.8 percent after a report that Apple will roll out a mobile person-to-person payment system.

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 Apple Pay logo is displayed in a mobile kiosk sponsored by Visa and Wells Fargo to demonstrate the new Apple Pay mobile payment system.
Apple, and the war over your wallet

JPMorgan Chase, Capital One, Wells Fargo, and U.S. Bancorp are among the banks speaking with Apple, the Journal reported.

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."

For more on the story, see the full Journal article here.