Apple Announces Peer-to-Peer Payments and the Apple Pay Cash Card
At the Worldwide Developers Conference, Apple announced they will add a peer-to-peer money transfer service to Apple Pay. This will allow users to send money to one another directly through their mobile wallets, similar to Venmo or PayPal.
Apple will integrate this service with its messaging system so friends can send money directly in a chat. PayPal already has a chat-based money transfer service through Facebook Messenger, and it can be used on iPhones or Android phones. The Apple Pay P2P transfer service will only work with Apple devices.
The company also discussed the launch of Apple Pay Cash. This is a digital debit card that holds money from peer-to-peer transfers. The card can be used to make purchases with Apple Pay, or the money from it can be transferred to a linked bank account.
Money transfers are free for debit cards, but credit cards will be charged a 3% fee. Apple plans to launch this feature in the fall with the introduction of iOS 11. Craig Federighi, senior vice president of software engineering at Apple, said Apple Pay will be available at 50% of U.S. retailers by the end of the year.