Following the announcement of Apple Card, Apple has gone ahead and made some changes to how Apple Pay Cash will work. The company has effective immediately stopped supporting credit cards for funds transfer to person payments.
This change means that Apple Pay Cash users will no longer be able to use their credit card to transfer funds to other persons. They can still use their linked debit card or bank account for this purpose. Apple is making this change to ensure that Apple Pay Cash customers are not charged with any fees from their issuing banks.
Following #AppleEvent, Apple just quietly announced — 30 minutes ago:
*Instant Transfer with fee, following Venmo’s update in October: 1% fee (with a min fee of $0.25 and max fee of $10) AND
*ending credit card funded peer to peer payments.
Objective? Drive #AppleCard adoption pic.twitter.com/yDek5GWkdu
— Hope King (@hopeking) March 26, 2019
Additionally, Apple is now allowing users to transfer money from their Apple Pay Cash balance to an eligible Visa debit card linked in their Wallet. The transfer will happen within a few minutes, though a 1% fee will be applicable on each transfer. The 1% fee translates into a minimum fee of 0.25$ and a maximum of $10 per transaction. If you want to avoid the fees, you can make use of ACH bank transfer, though the money will be credited in your account in 1 to 3 business days.
It is clear that Apple is making these changes to drive Apple Card adoption which is due to launch this summer in the United States. With no late fees, transaction charges, hidden charges, and an easy sign-up process, Apple is looking to attract customers towards Apple Card. The ease and simplicity of Apple Card should definitely win it some fans, though it remains to be seen if Apple is able to disrupt the credit card market as it did with the iPhone over a decade ago in the smartphone market.