What sources of funds can be used for peer-to-peer Apple Pay

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Peer-to-peer Apple Pay was announced during the 2017 WWDC keynote.

How does the money enter your Apple Pay account in the first place?

  • Does it come from a linked credit card, as in how Apple Pay traditionally works? If so, would the transaction be considered a cash advance or a purchase by the credit card company?
  • Does it come from a linked bank account or a linked debit card? If so, does that mean giving Apple a pre-authorization to withdraw money from your bank account? Also, is there an imposed or customizable limit to how much money can be withdrawn?
  • Do you buy credits to be added to your Apple Pay account using gift cards, at a convenience store or at an Apple Store?

Best Answer

Apple Pay Cash is being introduced in the US first, with iOS 11.2 and watchOS 4.2 betas. Both parties in a peer-to-peer transaction must have a suitable version of the software and have signed up for Apple Pay Cash.

Cash can be sent from a linked credit card (which incurs a 3% fee) or debit card.

Received cash is stored in an Apple Pay Cash card in Wallet. It can be used for purchases or sent to a bank account.

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