In follow up to the news reported earlier this week that Apple has launched its own P2P service (Apple Pay Cash), more details are emerging about how it actually works and the providers involved. Apple Insider discusses Discovers involvement in executing the payment piece where users have the option spend their P2P balances for purchases:
In order to bring the Apple Pay Cash debit card to life, Apple has utilized credit card provider Discover, whose Discover Network debit services power the virtual tap-to-pay card for money transfers and in-store purchases.
Discover officially announced its relationship on Tuesday, soon after Apple Pay Cash officially went live in the U.S.
Users can open the iOS Settings application, then Wallet, and select their Apple Pay Cash card to see under “Card Details” that the virtual debit card is powered by “Discover Debit.”
Apple Insider also makes this statement:
Though retail purchases are possible with Apple Pay Cash, the service’s primary function is an easy way to transfer money between friends through iMessage. With iOS 11.2 and watchOS 4.2, the Apple Pay Cash app for iMessage enables money person-to-person money transfers from within a text message conversation.
Although the product is rolled out as a person to person solution, I have to imagine that Apple is just fine having users store their money with them (though their bank partner GoBank) and then use those balances to shop with their app.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group
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