For almost a decade, millions of individuals all around the world have looked up at Apple when they wish to purchase apps, movies, and music. With the help of Apple Pay, they can purchase almost any product simply by holding iPhone over the NFC terminal at its store.
The leading mobile-based payment app in the modern era allows you to pay other individuals while maintaining funds with the feature of Apple Cash. The latest addition is the presence of the highly rewarding, innovative credit card of Apple Card. Apple Pay has indeed proven highly successful into the domain of card-free, cash-free shopping. In the modern days of the global pandemic, systems of contactless payments are highly recommended -more than ever. However, is Apple Pay the most widely available and easy-to-use option?
An Insight into Apple Pay and Apple Cash
Apple Pay and Apple Cash are digital service by Apple designed towards streamlining the system of modern payments and transferring money to family and friends. Both are available in the Apple wallet. Therefore, you can decide on selecting one or both while setting up. It will ultimately depend on what you wish to achieve.
The payment services are integrated into the Messages app. It is possible to send as well as receive money just like a text message. There is no requirement of any additional downloads beyond the scope of the operating system. These services, however, are available only in the United States.
How does Apple Cash Work?
Apple Cash is utilized towards sending and receiving money from other individuals in the Messages application. It can also be used towards funding other transactions of Apple Pay. It is possible to load Apple Cash -also referred to as Apple Cash Balance, with the help of a prepaid card or debit card.
With Apple Cash, it is possible to:
- Send as well as receive money with the help of Messages application through Apple Pay
- Transfer the balance of Apple Cash to the bank account
- Receive cashback (known as Daily Cash) from the Apple Credit Card
How does Apple Pay Work?
With Apple Pay, users are allowed to initiate payments online, in stores, and in apps from the mobile device -along with other Apple devices. It is possible to fund the Apple Pay account with the help of a linked prepaid card, debit, or credit card or with the balance of Apple Cash. The payments are expected to receive approval with the help of a Touch ID, passcode, or the double-click on side button of your Apple Watch.
Moreover, you can also send money inside the Messages app with the help of Apple Pay -funded by the balance of Apple Cash.
Getting Cashback with Apple Pay
You can look forward to getting cashback with Apple Pay in a simpler way. Users having access to Apple credit card will automatically receive a specific percentage of the purchases back in the form of Daily Cash -the term used by Apple for cashback. Therefore, when you are using Apple Card to ensure purchases through Apple Pay, you will receive cashback with the help of Apple Pay. The cashback gets deposited into the respective Apple Cash account.
Sending and Receiving Money with Apple Cash & Apple Pay
You can think of sending money in the Messages app with both Apple Cash and Apple Pay. However, it is possible to only receive money into the Apple Cash account. You can go ahead with sending money yourself or using the virtual assistant Siri of Apple. It typically involves making a voice command to execute operations on the system.
Upon receiving money, it will go directly into the Apple Cash account. You can make a decision to spend the money or transfer it to a bank account or debit card -taking up to three days. For balances that are above $1, Apple Cash imposes a minimum transfer amount requirement of $1 while transferring money to the bank account. However, if the balance is below $1, then you can transfer the full balance. You should know that the minimum deposit amount into the Apple Cash account from the prepaid or debit card is $10.
Apple Pay Payment Processing
Apple Pay is available as a mobile-based application for all iPhone variants (above iPhone 6) and the Apple Watch. Apple Pay leverages the NFC capability of the phone along with its built-in fingerprint scanner for allowing customers to ensure payment for products with the smartphones at physical or offline retail stores. It is made possible within different iPad or iPhone apps. In September 2018, Apple also came forward with the capability of sending money to other users of Apple Pay through the Messages app.
Apple Pay Vs. PayPal and Venmo
- Costs of sending money: Apple Pay is available free to use while sending money with the help of in-app balance or a linked debit card. Venmo is also available free of use. With Venmo, it is possible to use credit cards as well. However, it will cost 3 percent of the total amount of transfer. With PayPal, the process of sending money with the in-app balance is available for free. However, it is possible with a credit or debit card and costs around 2.9 percent along with a transaction fee of 30 cents.
- Availability of Platforms: Apple Cash and Apple Pay are available only on iOS. On the other hand, competitors like PayPal and Venmo are available on both iOS and Android platforms.
- Speed of Transfer: With Apple Cash, Venmo, and PayPal, you can receive money in the form of in-app balance. It can be then transferred to a bank account. The transfer takes around three days with Apple Cash and Venmo. With PayPal, the transfer can take around 5 days.
PayPal, Venmo and Apple Cash also give access to the instant transfer option. It helps in delivering funds within a fraction of minutes. The transaction fee remains the same for all three service providers. It is 1.5 percent of the total amount transferred. It is subject to certain maximums and minimums.
- FDIC Insurance: Transfers through Apple Cash are made possible through a bank. Upon registering with Apple Cash or Apply Pay account, the money is insured federally -for up to $250,000. It is similar to the case of a conventional bank account.
Balances in Venmo and PayPal applications are not insured by the Federal Deposit Insurance Corp., unless balances are from some direct deposits -like government benefits or paychecks.
- Limitations for Transfers: With Apple Pay or Apple Cash, you are allowed to transfer an amount of around $10,000 to any other individual for every transaction. At the same time, it is possible to transfer around $20,000 every week to the respective bank account or debit card.
With Venmo, it is possible to send the amount of $4,999.99 to other individuals for individual transaction. For weekly transactions, the limit turns out to be $2,999.99 for every transfer. The amount of $19,999.99 for every week in case of bank transfers with the help of a verified account.
When you are transferring money with the help of PayPal, there is a transfer limit of $60,000 for every transfer. In some cases, there is a limit of $10,000 for every transfer. When you ensure instant transfers to debit cards, you are exercised a transfer limit of $5,000 for every transfer and every week. In the case of instant transfers to bank accounts, there is a limit of $25,000 for every transfer.
- Ensuring Payments: It is possible to use Apply Pay or even Apple Cash through Apple Pay in apps and at stores, or even on websites. Moreover, you can also look forward to applying for the credit card of the company -the Apple Card. It helps in integrating with a myriad of other digital applications. Venmo and PayPal can also be utilized for ensuring payments online -both in stores and within apps. Each of them offers access to a credit card as well.
Apple Pay Pricing
There is no extra cost or charge while using Apple Pay -whether you store in app, at store, or online.
Top Reasons to Use Apple Pay
There are several benefits of using Apple Pay for executing modern transactions. Some are:
- Safety of Details: Every transaction made with the help of Apple Pay is initially authenticated with the help of touch ID or face ID. This ensures that you are making the payment, and not anybody else.
- No Limit for Contactless Payments: There is no limit to the payment amount you wish to make with Apple Pay. There is no limit on contactless payments.
- Availability on Multiple Devices: Apple Pay is mostly used on iPhone. Still, the feature of transferring money and executing transactions is also available on other devices like Apple Watch, iPad, and Mac.
Apple Pay, Apple Cash, and Apple Card work together towards offering iOS users an abundance of options for ensuring payments at stores and transferring or receiving money.