Home Technology Apple Takes On Venmo With Money Transfer Service Built Into iMessage

Apple Takes On Venmo With Money Transfer Service Built Into iMessage

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Apple wants to take a shot at every segment it possibly can, be it watches, cars, laptops, and now a money transfer service as well. The service will be available on the iPhone and iPad and will allow users to transfer money digitally via text messages. Apple’s new service, which will be baked into the iMessage app, is seen as a big threat to Venmo and other similar services.

A new iMessage feature to take on Venmo

Apple’s new money transfer feature will be available with the launch of iOS 11 this fall, a company spokesperson informed attendees at WWDC. In another major announcement at the event, the iPhone maker said it will launch a digital debit card of its own called Apple Pay Cash. With the card, users will be able to use the money received through the new money transfer service to make Apple Pay purchases online or at various physical stores that accept such payments, notes Recode.

The money received will be accumulated in the Apple Pay Cash Card, but the company has not yet made it clear if there will be an option to link the card with a bank account. This will be clear only when Apple updates its website with details about the new app and services that will come on iOS 11.

For the Pay Cash Card, the U.S. firm is partnering with the prepaid payment card company Green Dot.

A Green Dot spokesperson told Recode, “Today, Apple announced that it will bring its users the ability to make and receive person to person payments quickly, easily and securely with Apple Pay this fall.”

Apple’s money transfer service is easy to use

Apple’s senior VP of software Craig Federighi educated people about the new service and showed a quick demo in iOS11. It appeared quite easy, with users having the option of either requesting or sending money through the Apple Pay iMessage app with a simple tap on a large box, in which they have to specify the amount. Once done, they have to click send, and then the app will ask for fingerprint authentication, and that’s all.

Competition won’t be easy for the iPhone maker, as the industry is already filled with big names such as PayPal, Venmo, Square Cash, etc., and bank services like Chase QuickPay have gained huge popularity too. A drawback for Apple will be that its service will be restricted to its own devices, notes Recode.

Taking on Facebook, patching up with Amazon

Along with this money transfer service, Apple is also integrating stickers, photos, and everything else in iMessage. With this, the iPhone maker plans to take on Facebook, which made a lot of unique features available on its Messenger app after re-launching it as a standalone app, notes Consumerist.

On one hand, Apple has intensified its rivalry with Facebook, and on the other, it settled a years-long feud with Amazon. Following the patch-up, Amazon Prime Video will now soon be available to Apple TV users. However, there is no fixed date on when it will be available. According to Apple CEO Tim Cook, it will happen “later this year.”

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Aman Jain
Personal Finance Writer

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