Apple is reportedly ending its person-to-person payments made using credit cards.
As of Tuesday (March 25), you can no longer send a payment to another person using your credit card (including the upcoming Apple Card) via Apple Pay Cash, the company informed customers via e-mail. Reports noted users are still able to send payments via a debit card or via bank transfer. According to Cult of Mac, Green Dot Bank, the service Apple uses for its Apple Pay Cash platform, issued new guidelines regarding Apple Pay Cash. “Credit cards are not Supported Payment Cards and therefore cannot be used to fund a P2P Transfer or to add funds to your Apple Pay Cash Card,” the guidelines state, according to the report. Apple and Green Dot told Cult of Mac it was aimed at preventing customers from getting fees for making cash advancements on a credit card. The updated guidelines do add Instant Transfer to Apple Pay Cash Card. With it, users can send money to a debit card within minutes.
On Tuesday Apple announced Apple Card, a Mastercard that it partnered with Goldman Sachs to launch. The credit card has no fees and gives customers 2 percent cash back on purchases made with Apple Pay and 1 percent on purchases made with the credit card. Users sign up for the card with their iPhone in the Wallet App with the card ready in minutes, delivered straight to the iPhone. In an interview with Karen Webster, right on the heels of the Apple Card announcement, Mastercard’s Jorn Lambert, EVP of digital solutions, said there was a time when digital was secondary to plastic and, frankly, optional. Not anymore. As Lambert recounted, consumers are turning to their devices “for just about anything that they do, whether it is for entertainment or for social interactions … and increasingly, also for commerce.”