Peer-to-peer payments will most likely be included in this fall’s release of the new iPhone operating system, iOS11.
From Apple’s website: “Now you can use Apple Pay to pay and get paid right in Messages, or by asking Siri.”
Why does this matter to credit unions?
This looks to become another instance like messaging apps, streaming music and navigation apps where a previously separate tool by third-party provider becomes a part of the core phone platform. As result, this will significantly impact the adoption of solutions like Venmo, Square Cash and the new Zelle platform, as consumers may think, “Why do I need any of these services if it is integrated into my core phone functionality and available throughout my phone?”
The real impact on financial institutions outside of the possible impact on Zelle adoption should not be significant (short of the small fee paid to Apple), so long as Apple Pay, the payment method for this P2P, continues to leverage debit and credit cards. In fact, this new feature in the iOS could be positive for credit unions to the extent that it eliminates cash and other non-card transactions—it could create additional interchange income.
It’s important to note that the most interesting applications for P2P are in P2B and B2B space—and the Apple solution is not really very relevant to that market.
Tony DeSanctis is senior director/payments at CUES Supplier member and strategic provider Cornerstone Advisors, Scottsdale, Ariz.