If someone sends you money using Apple Pay, you could be able to use this balance using this card. Storing funds opens up a whole can of regulatory worms, in part to adhere to anti-money-laundering regulations.
Mobile payments are big business.
"Banks spent heavily in insuring their cards were top of wallet when they all built and rolled out Apple Pay", Cherian Abraham, a digital payments executive at Experian, told Recode.
Apple Pay on the Web. According to a report by Recode, Apple and Visa are now in talks to introduce prepaid digital debit cards that would allow users to spend money received from others. The new P2P service could be announced as soon as this year, but that timing could change.
New entrants into the field, therefore, would face steep competition from well-established players like PayPal, SquareCash, and similar offerings from larger USA banking institutions; although an iPhone to iPhone service, if implemented intuitively, could still be a victor for Apple in the end, especially as we progress towards the "next-generation" of increasingly digital payment and personal finance solutions. Jason Del Rey, writing for ReCode, predicted the new service would be called Apple Cash - thus following a consistent naming protocol as Apple already has "Apple Pay" - a service that is used by millions of consumers around the world. That's why Apple continues to explore new ways to implement Apple Pay. The company reportedly registered $17.6 billion this past quarter. Apple Pay on the Web is delivering our partners great results.
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Apple charges banks 0.15 percent of each Apple Pay credit card transaction in the US, and a tiny sliver of debit card purchases.
P2P payment services are notorious money-losers, though. Meanwhile, there are still costs associated with facilitating those payments. They can make purchases using their Venmo account, but they can use it like cash - splitting restaurant bills between friends, paying their share of the rent, or sending money on someone's birthday. Just this month, the social network added the ability to send group payments among friends. The company is in the process of rolling out its P2B offerings like Pay with Venmo, which allows merchants to accept Venmo on their sites and apps. The numbers alone are reason enough for Apple to step in the game, especially considering Venmo's results amid stiff competition.
As it stands, Apple plays nicely with Venmo. With a crowded space, Apple will certainly be hesitant to try developing a service of its own, even if it does see a bright future. This won't be a short-lived battle by any stretch of the imagination.