Apple files patent for person-to-person financial transactions

First, the user opens their Wallet app, selects which of the credit cards stored there they want to use to make the payment, and type in the amount they would like to pay. The payment can be authenticated using a fingerprint or the iPhones passcode. The system would also let the person paying pick the recipient from nearby iPhone users. Then, an encrypted payment packet is sent to the person receiving the payment, including the payment amount, verification and a payment credential, which could represent the senders credit card details.

Apple Pay is pretty hot on payment security already. When someone makes a purchase with Apple Pay at a store, they dont actually share their card details with the retailer. Instead, a token which corresponds with their account details is issued to authorise a payment. A third-party (the users bank or credit card provider) would complete the transaction, and the payee would get a notification to tell them the payment had gone through successfully.

Apple wants the Wallet to be the one place for all your credit and debit cards, reward cards, boarding passes, tickets and more, and eventually replace users’ physical wallet. The system Apple just patented would also let consumers make a payment from a gift or other prepaid card.

There are a lot of person-to-person (P2P) payment apps in circulation already, like Venmo and Square Cash. PayPal lets people pay both friends and merchants in stores, but still isnt dominating mobile payments, which seems to be Apples plan.

However, businessinsider.com notes that Apple doesnt always create the technology it patents, and could just be trying to stop a competitor using the same type of system.