Apple first unveiled its money transfer service called Apple Pay Cash built into Messages back at WWDC 2017, helping users send and receive money via Apple Pay. For this purpose, Apple also launched its own digital debit card called Apple Pay Cash card that works just like any other debit card allowing you to buy things online, or through tap and pay transactions in physical stores. Now, Apple has revealed the money transfer service is coming with a future update to iOS 11 and watchOS 4 this fall.
When the update arrives, Apple users will be able to send and receive money via a text in Apple Messages. In order to send money, you will have to head to Messages, open the chat of the person you want to transfer the money to, tap on the Apple Pay icon, enter the amount you want to send, select the payment card, authenticate with Touch ID or Face ID on iPhone X, and then tap send to easily transfer the money.
The money will be added to the recipient's Apple Pay Cash card that lives in the Wallet app. The receiver can start using the cash right away to make purchases using Apple Pay in stores, in apps, and on the Web. You can also transfer the Apple Pay Cash balance to your bank account. Apple has updated its Apple Pay website with a "coming this fall" release for this money transfer feature.
As an initial funding source, Apple users will have to add a debit or credit card to the Apple Wallet app. Recode reports that the money transfer service will not charge a fee when using a debit card or Apple Pay Cash card, but if a credit card is used, then a 3 percent fee will be charged.
This new service and the digital debit card will open up the usage of Apple Pay to more customers, especially students who don't have a bank account yet. This could enable them to hold a virtual card on Apple Pay without the need to have a bank account, and send and receive money digitally easily.