CUPERTINO, Calf. (7/7/15)--Apple has filed for a new patent defining a person-to-person (P2P) payments technology, according to a report from Forbes.com (July 4).
The P2P payments could grab market share from players such as PayPal and Square and would add another element to Apple’s payment strategy, which already includes Apple Pay for consumer payments.
Apple has not made an announcement when or if the P2P system will be offered to the general public. The company does not always create the technology it patents.
Through the new P2P module, an iPhone user would activate their Apple payment app, chose a stored card that they want to use to make the money transfer with, and type in the amount they would like to pay, Forbes reported. The payment would then be authenticated using Touch ID or the iPhone’s passcode. The Apple system would also let the person pick the recipient of the funds from nearby iPhone users.
Presumably, a third party--the user's financial institution or credit card provider--would complete the transaction, and the payee would receive a notification to tell them the payment had gone through successfully.