Whenever Apple enters into a new tech industry or platform, they dominate the market share and run competitors out of business.
Apple has fully launched their "Apple Pay Cash" in their recent release of their iOS 11.2 beta. Apple Pay Cash is like a Venmo, Square Cash, and SnapChat Pay, but instead of an app, it's directly in your iMessages. These apps allow you to send money from person-to-person without ever handing over real paper monetary. Venmo and SquareCash are third-party applications on your mobile device that allow you to connect you're preferred banking (checking, savings, credit, etc) account number and routing number in, to be able to transfer funds. Within each app, they have their own equivalent "banks" where you can store collected money, instead of transferring it into your personal bank account, and can send away only allotted money in this storage "bank." These third party banking apps really took off because you could no longer make the excuse of "I don't have cash on me to pay, but I'll pay you back" and then you never get paid. It was made super accessible because it had the ability to transfer money to and from different banks without a surcharge thrown in. Also, they were made for only application use, so it was right there in your pocket for you to pull out your phone and pay, right then and there, without having to wait to log-in on a computer when you got home. It has also been made into a social atmosphere by allowing you to connect your social media platforms to your account for the purpose of connecting with your friends who you are most likely to do transactions with. However, in doing so, you can see all of your friend's transactions and who they are paying and for what, whatever message you're required to attach. The only catch to these financial applications, was that when transferring money you had been paid into your personal banking account from the app, it wasn't an immediate transaction. Typically it takes a day or two, for the money to transfer over completely. However, Square Cash took a hold of the market share by offering a feature in which you could transfer your funds into your bank account immediately, for a 10% charge on the transferred funds. Just as the rise and development of Venmo and Square Cash, hurt business for Western Union, which was a paper version of sending money from person-to-person or business, a more simpler and more readily available option is now here.
Apple Pay Cash allows you to send and receive money from friends straight from your messages, no extra application needed to take up storage on your phone. Apple Pay Cash just connects to your Apple Pay account, and transfers money in and out through the banking account you set up through Apple Pay. Apple Pay Cash will work in the way Venmo and Square Cash have, in the sense that it will create a card (Venmo and Square Cash provide a 'bank') for you, but instead of having to transfer it into your personal account or using that money to pay within the app, you can use it like a gift card to pay anywhere Apply Pay is accepted. It isn't quite known yet, if you decide to transfer funds from your Apple Pay Cash to your personal bank account if there is a fee charged or how long it takes to be fully transferred. The biggest win here for the consumer is the ease of access being readily available in your messages, the ability to use it as real money instead of having and waiting for the money to transfer, and it's not a social thing where your friends see who you are paying and having to leave a comment/message. The downside to this new feature, is it requires both parties to have an Apple product and have iOS 11.2 or higher to be able to complete any transactions.
The power of Apple is strong to be able to dip their toes in a new market segment and be able to influence a majority of market share. For now, there are holes here and there for Venmo and Square Cash to survive but it doesn't look good for the future of these companies as Apple comes in and overtakes a part of the market they do not specialize in once again.
Apple has fully launched their "Apple Pay Cash" in their recent release of their iOS 11.2 beta. Apple Pay Cash is like a Venmo, Square Cash, and SnapChat Pay, but instead of an app, it's directly in your iMessages. These apps allow you to send money from person-to-person without ever handing over real paper monetary. Venmo and SquareCash are third-party applications on your mobile device that allow you to connect you're preferred banking (checking, savings, credit, etc) account number and routing number in, to be able to transfer funds. Within each app, they have their own equivalent "banks" where you can store collected money, instead of transferring it into your personal bank account, and can send away only allotted money in this storage "bank." These third party banking apps really took off because you could no longer make the excuse of "I don't have cash on me to pay, but I'll pay you back" and then you never get paid. It was made super accessible because it had the ability to transfer money to and from different banks without a surcharge thrown in. Also, they were made for only application use, so it was right there in your pocket for you to pull out your phone and pay, right then and there, without having to wait to log-in on a computer when you got home. It has also been made into a social atmosphere by allowing you to connect your social media platforms to your account for the purpose of connecting with your friends who you are most likely to do transactions with. However, in doing so, you can see all of your friend's transactions and who they are paying and for what, whatever message you're required to attach. The only catch to these financial applications, was that when transferring money you had been paid into your personal banking account from the app, it wasn't an immediate transaction. Typically it takes a day or two, for the money to transfer over completely. However, Square Cash took a hold of the market share by offering a feature in which you could transfer your funds into your bank account immediately, for a 10% charge on the transferred funds. Just as the rise and development of Venmo and Square Cash, hurt business for Western Union, which was a paper version of sending money from person-to-person or business, a more simpler and more readily available option is now here.
Apple Pay Cash allows you to send and receive money from friends straight from your messages, no extra application needed to take up storage on your phone. Apple Pay Cash just connects to your Apple Pay account, and transfers money in and out through the banking account you set up through Apple Pay. Apple Pay Cash will work in the way Venmo and Square Cash have, in the sense that it will create a card (Venmo and Square Cash provide a 'bank') for you, but instead of having to transfer it into your personal account or using that money to pay within the app, you can use it like a gift card to pay anywhere Apply Pay is accepted. It isn't quite known yet, if you decide to transfer funds from your Apple Pay Cash to your personal bank account if there is a fee charged or how long it takes to be fully transferred. The biggest win here for the consumer is the ease of access being readily available in your messages, the ability to use it as real money instead of having and waiting for the money to transfer, and it's not a social thing where your friends see who you are paying and having to leave a comment/message. The downside to this new feature, is it requires both parties to have an Apple product and have iOS 11.2 or higher to be able to complete any transactions.
The power of Apple is strong to be able to dip their toes in a new market segment and be able to influence a majority of market share. For now, there are holes here and there for Venmo and Square Cash to survive but it doesn't look good for the future of these companies as Apple comes in and overtakes a part of the market they do not specialize in once again.
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