Apple Inc. (NASDAQ:AAPL) has added a new feature to its Apple Pay mobile wallet. The feature, which will be built into iMessage as an app, is similar to Venmo, the PayPal-owned payments app. Its primary role will be to enable its users to send money directly to their contacts with one tap. The integration will also enable the recognition of statements such as “you owe me $10”, which in return prompts automatic sending of money to the person asking for it.
The payments commonly known as peer-to-peer payments have a large market and they are growing by the day according to Forrester Research. Speaking at the annual developer conference, WWDC, Apple’s vice president of engineering, Craig Federighi claimed that Apple Pay has become the most sought-after contactless payment service on mobile devices nationwide.
But Venmo has also had massive success
It remains to be seen how Apple Pay intends to compete with Venmo, which has been on the market longer. The app has been growing having processed a record $6.8 billion in the first quarter of 2017. This was double the amount reported in last year’s same period.
Apparently, the use of iMessage to send money is not a new concept in the market given that apart from Venmo, companies like Square are already using the iMessage apps. However, Apple could have an upper hand with its Apple Pay; thanks to the fact that it owns much of the app ecosystem.
The iPhone maker will issue virtual cards
With its new feature, Apple will also be creating a provision for having its customers use Apple Pay from whatever location. Every iOS user will be issued with a Virtual card within which they can hold a balance to spend later. It will also make it possible to cash this money out to one’s bank account.
The new feature will be available a part of iOS 11 and WatchOS 4. However, the tech giant has not revealed whether or not the sending or receiving of money through iMessage will be free or not. Meanwhile, Apple’s stock closed at $153.93 a fall of $1.52 or 0.98%.