Skip to main content

Apple Pay could soon take on Venmo, Square Cash with money-transfer service

apple pay money transfer report iphone 6s xlarge
Apple is getting serious about expanding its digital wallet service into money transfers, and could announce the new service later this year. The feature would transform Apple Pay into a competitor to apps like PayPal’s Venmo and Square Cash, which allow users to send money to one and another through the use of an attached bank account or credit card, Recode reports.

The article cites sources familiar with the company’s plans, but offers conflicting reports; one source says a formal announcement can be expected later this year, while another says the launch is still up in the air. Either way, Apple was rumored to be considering such a service back in 2015, but nothing materialized after it convened with several large American banks.

Related Videos

If money transfers through Apple Pay are indeed back on again, it could prove to be a massive boon to the company’s platform. While Apple Pay was reported to be the leading digital payment system in the United States back in February, there’s still enormous room for growth as new retailers support the service and make it more ubiquitous.

To that end, another report claims Apple Pay may actually leave the iPhone in the form of a physical prepaid debit card, which could use those funds acquired through money transfers. Of course, those funds would be available on the device as well, but a physical card adds the benefit of a credit card number, which could be used for payments on websites. Recode says the card would run on Visa’s network, and the two companies were recently in talks about the partnership.

Financial institutions, however, are worried such a move would bolster Apple Pay at the expense of their own credit and debit cards, as the company could easily give priority to its payment method within the app while downplaying everything else. It’s rumored that these companies could be pressuring Visa against working with Apple — possibly delaying the related money-transfer service and contributing to Apple’s indecision over when and how to launch the effort.

Editors' Recommendations

In 2023, Apple needs to fix its embarrassing 5GB iCloud limit
Apple ID banner in the Settings app on an iPhone 14 Pro

The year is 2030 and Apple has released its first foldable iPhone, the iPhone 21 Pro Ultra Max Fold. You can get up to 4TB of storage, and prices start at $2,500. But you still only have 5GB of free iCloud storage.

Just kidding. Well, about the hardware part. It’s almost 2023, and yes, Apple still only gives you 5GB of storage for free with iCloud. Seriously? There's no arguing that 5GB is literally nothing these days. It’s shocking how Apple continues to only offer 5GB for free, despite the fact that even competitors offer a little more than that before going to paid tiers. Heading into 2023, it’s time for Apple to bump that up — even just a little bit.
5GB is no longer a realistic number

Read more
I found a hidden end-of-2022 recap on my iPhone, but I wish I hadn’t
Apple Card sitting on top of an iPhone 14 Pro with the Wallet app open to digital Apple Card

It’s hard to believe that 2022 is about to wrap up in a few days and 2023 will be here shortly. Seriously, where does the time go? And boy, it has been a pretty crazy year when it comes to tech and, well, social media. And we know that the internet loves end-of-year recaps!

It’s a good time to reflect while also looking forward to new goals and resolutions. On the recap front, there are plenty of ways that you can see your activity from the past year. You can make your own Instafest Spotify festival with your most listened-to artists of the year, see how you spent your time on Reddit, what games you’ve played on your Nintendo Switch, or even make an Instagram Recap Reel — there are so many options.

Read more
Apple may do the unthinkable — allow third-party iPhone app stores
App Store displayed on an iPhone 14 Pro against a pink background

Ever since 2008, Apple has only allowed its own App Store on the iPhone. In the past, if you wanted alternative digital storefronts, you’d have to jailbreak your device. But in response to impending regulations from the European Union, Apple may be allowing alternative app stores on the iPhone and iPad in the near future — potentially as soon as iOS 17 in 2023.

According to a report from Bloomberg’s Mark Gurman, this will be the very first time that Apple will allow third-party app stores on the iPhone. It seems that Apple is already dedicating a “significant amount of resources to the companywide endeavor.”

Read more