Apple has introduced two distinct services: Apple Cash and Apple Pay. While they share the Apple brand and cater to users seeking secure and convenient payment methods, they serve different purposes and have unique features. In this article, we’ll explore the differences between Apple Cash and Apple Pay, helping you understand when and how to use each service.
Apple Cash: A Peer-to-Peer Payment Solution
Apple Cash, previously known as Apple Pay Cash, is Apple’s peer-to-peer (P2P) payment service. It’s designed to facilitate money transfers between individuals using Apple devices. Here are the key features of Apple Cash:
- Person-to-Person Payments: Apple Cash allows users to send money to friends and family directly through iMessage or the Apple Cash app.
- No Fees: Sending and receiving money with Apple Cash is typically fee-free, making it an economical choice for P2P payments.
- Apple Cash Card: Users have an Apple Cash card in their Apple Wallet, which they can use for in-store purchases, online shopping, or transferring funds to their bank account.
- Security: Apple Cash transactions are secure, employing features like Face ID, Touch ID, or a passcode for authentication.
- Balance Tracking: Users can check their Apple Cash balance and transaction history in the Apple Wallet app.
- Bank Transfers: Funds can be transferred from Apple Cash to a linked bank account.
Apple Pay: A Universal Digital Wallet
Apple Pay is a versatile digital wallet and mobile payment service that can be used for both in-store and online purchases. Here are the key features of Apple Pay:
- Contactless Payments: Apple Pay allows users to make secure, contactless payments using their Apple devices at supported point-of-sale (POS) terminals.
- Online Shopping: Users can use Apple Pay to make purchases within apps and on websites that support the service.
- Security: Apple Pay employs tokenization, ensuring that sensitive card information is not shared with merchants, enhancing security.
- Card Compatibility: Apple Pay supports credit and debit cards from various financial institutions and can store multiple cards for user convenience.
- Device Compatibility: Apple Pay is available on a range of Apple devices, including iPhones, Apple Watches, iPads, and Macs.
- Transportation and Access: In some cities, Apple Pay can be used for public transportation fares and access to buildings and events.
Key Differences
Now, let’s outline the key differences between Apple Cash and Apple Pay:
- Purpose: Apple Cash is primarily for person-to-person payments, while Apple Pay is for both in-store and online purchases.
- Fees: Apple Cash transactions are typically fee-free, while Apple Pay transactions are subject to the fees associated with the linked credit or debit card.
- Usage: Apple Cash is ideal for splitting bills, paying friends, or reimbursing family members, whereas Apple Pay is more versatile and can be used for everyday purchases.
- Compatibility: Apple Pay is available on a broader range of Apple devices and is widely accepted at various retailers and online platforms.
Apple Cash vs. Apple Pay: Side-By-Side Comparison
| Specification | Apple Cash | Apple Pay |
| Payment Method | Done via balance, Bank Account, Debit Card, Credit Card | Done via a Credit Card, Debit Card, or Apple Cash balance |
| Payment Type | Peer-to-Peer | Mobile Payment and Digital Wallet |
| Use | Send and receive money | Make purchases in stores, apps, and online |
| Supported Devices | iPhone, iPad, and Apple Watch | iPhone, iPad, Apple Watch, and Mac |
| Transaction Fees | No fee for debit card transfers unless its instant transfers | No fee for transactions |
| Transaction Limits | $10,000 per transaction, $20,000 per 7-day period | Varies by merchant and credit card limit |
| Rewards | Apple Card offers cash back rewards on Apple cash | Offers cashback and rewards program |
| Security | Face ID authentication or Touch ID, Two-factor authentication | Face ID authentication or Touch ID, Two-factor authentication, Tokenization |
| Availability | US only | Available worldwide |
How does Apple Cash work?
You can use your Apple Cash card alongside Apple Pay to make mobile payments in stores and online. Just select the Apple Cash card in your wallet when you use your smart device to make a contactless payment, or look out for the Apple Pay symbol when you’re shopping with ecommerce stores.
You can also use Apple Cash to easily send money to other Apple device users in the US, through Messages. Just open a chat you’ve been having with the person you want to send money to, and tap the Apple Cash button. You’ll see your payment options and can enter the amount you want to send right away.
Receiving a payment from someone on Apple Cash is one way to add money to your Apple Pay – and Apple Cash is also where you’ll find any cash back rewards from your Apple Card.
How to set up Apple Cash?
Apple Cash is automatically available on eligible Apple smart devices in the US. Take a look in your Apple Wallet to find your card.
To use your Apple Cash account, you’ll need to add a debit card to Apple Wallet, which can be used to add money to your Apple Cash card or to send a payment in Apple Messages. We’ll cover how to add a card to your Wallet in just a moment.
What is Apple Pay?
Apple Pay² is Apple’s mobile payment solution. It lets you use your Apple Card – or more or less any other eligible credit or debit card – with your Apple digital wallet, to make contactless payments in person, and spend online without needing to enter your card information every time. If you’re able to find an ATM which allows contactless payments, you may even be able to use Apple Pay at an ATM to make a withdrawal. Just tap your phone as you would a contactless card.
You can use Apple Pay abroad for mobile payments, but it’s worth bearing in mind that any international fees applied by your card will still be levied if you spend overseas with Apple Pay.
Apple Cash vs. Apple Pay: What’s the Difference?
Apple Cash and Pay provide two popular financial transaction methods in our modern digital society. However, each technique has distinct differences that merit examination. Through the analysis of the differences, users are provided the choice to select their financial solution of preference.
Rewards
Apple Cash is a digital card in your Wallet. It acts as a peer-to-peer payment system that enables users to send and receive money using Apple Messages App. or Wallet. It does not provide any rewards in itself.
Apple Pay is a digital wallet service and mobile payment app that enables users to make in-store, online, and app payments quickly and conveniently. Rewards may be earned when Apple Pay purchases are completed with linked Apple Card credit cards. Users who make purchases can earn cashback rewards on the Apple Card if they use the card via Apple Pay.
Compatibility
Apple Pay is a mobile payment system that uses Apple devices, like an iPhone, iPad, or Apple Watch, to pay using credit or debit cards. Furthermore, it is more accessible and compatible with various payment terminals that accept contactless payments. In addition, users can access various financial institutions or merchants using Apple Pay internationally.
Apple Cash allows users to send and receive money over text messages or Siri voice assistant. Nonetheless, Apple Pay Cash accounts are currently only available in the US. To access Apple Cash, users require either an iPhone, iPad, or Apple Watch running iOS or watchOS on an eligible device.
Withdrawals
Apple Cash has no restrictions on withdrawing funds directly into bank accounts and debit cards. Furthermore, users may use their Apple Cash balance funds at merchants that accept Apple Pay purchases.
On the other hand, Apple Pay was explicitly developed to be used at merchant locations without physically present cards. Additionally, it allows users to pay with iPhone, Apple Watch, or iPad using contactless payments.
However, Apple Pay does not offer its users the option to withdraw funds. Instead users can link debit or credit cards to Apple Pay and then make payments. Ultimately, linking the cards to Apple Pay can make it so users do not have to physically present the cards.
Security
Apple Pay is a secure digital wallet that uses tokenization technology to safeguard the user’s financial information. Furthermore, users do not directly reveal their credit or debit card data when making Apple Pay payments. On the contrary, a unique token is generated for every transaction, which can then be sent to merchants for processing.
Consequently, this step helps prevent fraudsters and unapproved transactions from processing payments without authorization under Apple Pay. Also, this helps combat potential instances of identity theft that might take place, as well as potential breaches in security.
Apple Cash also utilizes stringent security measures to safeguard user transactions. Apple Cash transactions are encrypted end-to-end so only the sender and recipient can view payment info. Furthermore, like in Apple Pay, users must authenticate using Face ID, Touch ID, or passcode authentication before conducting transactions.
Availability
Apple Pay is available in many countries throughout the world. It is integrated with numerous banks and financial institutions. Consequently, this enables users to make payments at physical stores, online merchants, and in-app. Furthermore, Apple Pay works seamlessly across iPhone, iPad, and Apple Watch models that meet its hardware/software requirements.
On the other hand, Apple Cash is only available within the US. It is, however, intended primarily to facilitate person-to-person payments using text messaging and Siri voice-recognition software. Additionally, while Apple Pay can be used with various types of debit and credit cards issued by participating banks across the globe, Apple Cash only supports American-issued cards.
Transaction Fees
Apple Pay does not charge users transaction fees when paying with credit or debit cards. However, some merchants may apply a small service charge similar to what would be associated with using physical credit or debit cards.
Apple Cash does not charge transaction fees for everyday transactions made using its service, including sending and receiving money transfers. However, instant transfers made directly into bank accounts incur an instant transfer fee of a small percentage. Additionally, instant transfer costs emanating from debit cards are lower than when a credit card is applied.
Apple Cash vs. Apple Pay: 6 Must-Know Facts
- Apple Cash is a peer-to-peer payment service designed for sending and receiving money between Apple Cash users; on the other hand, Apple Pay primarily caters to merchant contactless payments.
- Apple Cash allows users to withdraw funds directly into their bank account or debit card, while Apple Pay doesn’t give users that option; instead, they must link their cards for payments only.
- Apple Cash and Apple Pay work seamlessly across Apple devices such as iPhones, iPads, and watches.
- Apple Cash and Apple Pay have different transaction limits: Apple Cash transactions can go no further than $10,000 per transaction or $20,000 over any seven days; for Apple Pay, however, that amount varies based on merchant limits and user credit/debit limits.
- Apple Cash and Apple Pay offer advanced security by employing biometric authentication methods like Face ID or Touch ID to authorize transactions.
- Apple Cash transactions are free for debit card transfers but incur fees when instant transfers occur, unlike Apple Pay, which doesn’t impose fees when linked credit or debit card transactions occur.
Apple Cash vs. Apple Pay: Which One Is Better? Which One Should You Use?
The service a user chooses depends entirely on their needs. Apple Pay is designed for contactless in-store and online purchases using credit and debit cards linked with Apple devices or Apple Cash accounts. There is no fee for transactions and users are offered rewards when using Apple Card credit cards to make payments via Apple Pay. Apple pay uses tokenization technology for security, and the service is also available worldwide.
Apple Cash provides users with a peer-to-peer payment service that enables money exchanges between individuals. It allows the withdrawal of funds to bank accounts or debit cards at any time, but the service does not offer rewards. Apple Cash also uses stringent security methods, however it is only available to US users.
Apple Pay could be a user’s best bet if a primary transaction involves in-store and online purchases. Nevertheless, Apple Cash might be best if sending and receiving money is more frequently required between Apple Cash users. Ultimately both services offer secure, convenient ways of transacting digital payments.
Apple Cash vs. Apple Pay: What’s the Difference? FAQs (Frequently Asked Questions)
What is the fee for using Apple Cash and Apple Pay?
Apple Pay does not charge fees when transacting with linked credit or debit cards; however, instant transfers through Apple Cash incur charges; debit card transfers remain free.
What is the transaction limit for Apple Cash and Apple Pay?
Apple Cash transactions have an upper transactional limit of $10,000 per transaction and $20,000 over seven days; for Apple Pay transactions, the maximum limit per transaction depends upon merchant limits and the user’s credit or debit card limits.
Can I withdraw funds from Apple Pay?
No funds can be withdrawn from Apple Pay. Apple Pay provides access to your credit or debit card so payments may be made, but it does not permit the withdrawal of funds from their system.
Are Apple Cash and Apple Pay secure?
Apple Cash and Apple Pay are secure payment solutions with biometric authentication methods like Face ID or Touch ID to verify transactions and fraud protection.
Can I use Apple Cash and Apple Pay on the same device?
Yes, Apple Cash and Apple Pay can be utilized within one app on one device: they’re integrated into Apple Wallet.
Conclusion
In summary, Apple Cash and Apple Pay serve distinct purposes within the realm of digital payments. Apple Cash is your go-to for sending money to friends and family, while Apple Pay is a versatile tool for making secure and contactless payments in stores and online. Understanding the differences between these two services allows you to choose the one that best suits your specific payment needs.