“Paying someone through your phone has never been easier,” Mark Wilson writes for Fast Company. “Recently, Apple announced an Apple Pay update in iOS 11 that will let you send someone cash straight through iMessage – much like you can with Venmo or Facebook Messenger. And boy, does Apple make it easy. All you have to do is select an amount and authenticate it with your fingerprint. Thanks to Apple’s thoughtful design, money flows from your bank account to someone else in moments, without a second thought.”

“Well, kind of. It doesn’t flow directly into the recipient’s bank account. It goes onto an Apple Pay cash card. Call it Apple bucks. Cupertino’s Monopoly money. The equivalent of a gift certificate. To actually collect any of the money for rent, utilities, and all those pesky things that matter, your friend will need to manually transfer it to their bank, via an interface undisclosed in the process,” Wilson writes. “It cannot be automated. In other words, Apple is making the conscious choice to sit on your money, most likely reinvesting it for millions in returns, while offering you the equivalent of a gift card for your efforts.”

“Neither PayPal nor Venmo enable auto deposits, either. But two of Apple’s closer peers, Facebook and Google, both enable auto deposits for cash sent through their systems,” Wilson writes. “[Because of the current low rate environment] here’s little to no monetary reason for Apple to withhold our funds. So why does Apple plan to do it? …Apple’s strategy with Apple Pay… transforms the $20 a friend sends you for buying lunch into fun money to be spent at Apple Pay merchants, or even better, Apple itself… But the play is really much bigger than even trapping consumer dollars as an Apple gift card. It’s about keeping those consumer dollars within the entire Apple Pay merchant ecosystem.”

Full article here.

MacDailyNews Take: In his full hit piece, Wilson laments the fact that “the average American doesn’t have very much money on hand. By one study, 53% of us can’t come up with $400 to cover an emergency expense.”

Is it Apple’s fault that 53% of Americans are irresponsible with their money? How much do you want to bet that those exact same 53% of Americans have 50+-inch HDTVs, with Xbox, Playstation, and/or Nintendo game systems attached, the attendant games, Netflix subscriptions, etc. etc. etc.?

In short, it’s not Apple’s fault that 53% of Americans forgot or never heard the timeless advice: If you don’t have the money, don’t buy it.

That little bit that Apple can generate between the time the money is sent and the receiver transfers it to their bank account or, for the aforementioned 53% of “average Americans,” blows it on cancer sticks and scratch off tickets, covers the expense of running the service.

Interesting fact: Android’s U.S. marketshare is 53%.

Apple Pay person-to-person payments: Cupertino’s Venmo killer – June 6, 2017