Understanding Apple Cash vs Apple Pay: What's the Difference and How Do They Work?

In the US, Apple Pay is the most used wireless payment application. However, in 2017, the corporation launched another service called Apple Cash. Is Apple Pay different from Apple Cash, or is it the same thing? What is Apple Cash vs Apple Pay? Keep on reading the article to figure everything out.

Apple Pay

Is Apple Pay the same thing as Apple Cash? Of course not. It is a digital wallet that accepts all eligible credit and debit cards, including Apple Card. The app allows you to make contactless payments without entering your card details each time or using its physical counterpart. You can even make withdrawals at ATMs if you find a cashpoint allowing contactless payments.

Functionality

The international mobile payment network enables payments made through applications and websites. For this, a customer links a card in the Wallet app on an iPhone, iPad, or MacBook. When paying, all you need to do is authenticate the transaction using a password, fingerprint scan, or facial identification. You don't have to input the card number, 3DS code, or date each time. Meanwhile, the bank card data is encrypted and inaccessible to the merchant as the system operates with tokens.

Usage

People use Apple Pay for various online and offline transactions. You can make contactless payments in stores, online, and within apps. Basically, you can use it anywhere contactless payments are accepted, even in taxis or at vending machines. Additionally, you can make person-to-person payments or donations and purchase subscriptions for services.

Security

The service doesn’t allow binding a card if a password is not set or if Touch ID or Face ID are not activated. When adding a card, the data is encrypted and sent directly to the server. The card's image is not saved in the gallery and is not transmitted via the photo stream.

If your issuing bank supports Apple Pay, the bank sends a unique encrypted ID. It is recorded on the server and on a protected module on the Secure Element motherboard, which is isolated from iOS and iCloud. The company doesn’t store the full list of card data, but only fragments of numbers. It also doesn’t record personalized transaction data. There is only anonymous information about the date and amount of the financial transaction.

Online payments are encrypted using a tokenization system. Therefore, even if the transaction details are leaked, they won't reveal any valuable information regarding your card or payment details. In addition, Apple Pay checks the validity of the domain for each transaction.

How does it work?

Apple Pay uses near-field communication technologies to handle contactless transactions from your device. To start working, you just need to input your card data into Wallet. When you use Apple Pay, your payments and personal data are secure because all your information is encrypted.

After registering your card in the app, payments become a breeze. You just need to:

1. Add a product or service to the shopping cart on the website or in the mobile app on a compatible device.
2. Press the Apple Pay button.
3. Confirm the payment using biometric authorization methods like fingerprint, Face ID, or input the password.
4. The bank withdraws the required amount of money from your card linked to the Wallet.

Apple Cash

Is Apple Cash the same as Apple Pay? Absolutely not. It is a virtual card integrated into the Wallet that can be found on any iOS gadget.

Functionality

The money you receive is kept in the Wallet. You can spend it by making payments via Apple Pay in online and offline shops or within applications. You can also transfer and receive money via the Messages app or Wallet and move your money to a banking account. If you have an Apple Card, you can get daily cashback from it.

Usage

The main purpose is to make easy person-to-person payments. You can do this in a few clicks via iMessage or simply ask Siri to send money to your friends or family. Additionally, you can shop anywhere Apple Pay is accepted.

Security

Apple Cash ensures security through tokenization and encryption. It requires biometric authentication or a passcode for transactions, ensuring only authorized users can make payments. Sensitive data is stored in the Secure Element, a dedicated chip on the device, and each transaction generates a unique, one-time security code to prevent fraud. Additionally, the company maintains user privacy by not storing or sharing transaction information.

How does it work?

Does Apple Cash work like Apple Pay? Not exactly. The principle is very similar to that of a virtual bank card. You are issued a card that you can use to pay and accept payments from other users. Also, you can send money on demand via iMessage to your friends.

The card is activated in the Wallet app. You just need to click on its image and go through all the necessary steps in the registration process.

The process of transferring money via iMessage is also pretty straightforward. In the messenger, click on the Apple Pay icon, enter the required sum, and send a message with the request to your friend. Usually, they’ll receive the money in a few seconds.

As for other payments, the process is the same as using your usual card with Apple Pay; you only need to select another card before payment.

What is the Difference Between Apple Pay and Apple Cash?

So, is there a difference between Apple Pay and Apple Cash? Apple Pay focuses on accepting credit and debit card payments at businesses. Apple Cash, on the other hand, is a digital card inside the iOS ecosystem intended to transfer and receive money between people and to make purchases.

The biggest difference between Apple Pay and Apple Cash is in funding sources. Apple Cash transactions employ the Apple Cash card's balance or funds from a connected banking account. In turn, the credit or debit cards linked to the Wallet app are used for Apple Pay transactions.

The last thing about Apple Cash vs Apple Pay is their usage. The latter is used for a wide range of retail and online payments, while the former is primarily for peer-to-peer payments and limited retail purchases using the Apple Cash card.