Apple's new business chat app will challenge Facebook Messenger

Apple's senior VP of software Craig Federighi educated people about the new service and showed a quick demo in iOS11.

Other competing services include PayPal, Square Cash, and Chase QuickPay. Apple Pay now spans physical point-of-sale, apps, browsers, and P2P channels.

Apple could be following in the footsteps of Facebook, bringing business conversations to its popular mobile messaging app, iMessage. Its primary role will be to enable its users to send money directly to their contacts with one tap. They can use the money to send to someone, make purchases using Apple Pay in stores, apps and on the web, or transfer it from Apple Pay Cash to their bank account.

Apple's new money transfer feature will be available with the launch of iOS 11 this fall, a company spokesperson informed attendees at WWDC.

"Whether Apple's announcement of the introduction of P2P iMessage payments and the Apple Cash Card heralds its attempts to become a bank really depends on how you define a bank", Chris Ward, research manager at mobile banking experts Mapa Research, told The Memo. That said, the major bottlenecks for Apple Pay to achieve success are likely to be merchant adoption and spelling out a compelling consumer value proposition.

This refers to younger iPhone or iPad users that do not have a debit or credit card yet.

According to the Verge, money will be transferred to an "Apple Pay Cash Card", noting that Apple has not verified whether money can then be transferred to a user's own bank account. They are now working with Apple as both the Program Manager and regulated bank partner to ensure easy, secure, and instant payment services.

For example it took Apple a while before they opened up Touch ID to third-party developers, and it took them even longer before making Siri accessible by third-party apps.

  • Arturo Norris