Apple Inc. is in discussions with U.S. banks to develop a payment service that would let users zap money to one another from their phones rather than relying on cash or checks, according to people familiar with the matter.

The move would put the tech giant in competition with an increasing number of Silicon Valley firms trying to persuade Americans to ditch their wallets in favor of digital options.

A small but growing number of Americans are already starting to embrace such services allowing consumers to pay baby sitters, split dinner checks and share other bills.

The talks with banks are continuing and it is unclear if any of the firms have struck an agreement with Apple, these people said. Key details remain in flux, including technical aspects that would determine how the service would tie into the banking industry’s existing infrastructure, they said.

If Apple’s plans go forward, the service would likely be similar to PayPal Holdings Inc.’s Venmo platform, which is popular among younger consumers to do things such as pitch in on gifts and share rent payments with roommates.