With the introduction of Apple’s new iOS11, online and peer-to-peer payments will have a few changes from the old system on Apple Pay. A sneak preview of the new operating system has revealed some interesting answers to how it will work in the future.

Upgrade allows payments to friends

While the current Apple Pay can only be used to pay online or in stores for goods or services purchased, the new version, compliant with Apple’s new ideas to upgrade Apple pay on their iOS11 system, will mean users will now get the ability to make peer-to-peer payments as well. This means they will be able to make payments to anyone on the contacts list, who also uses Apple Pay. This new feature of their upcoming operating system was announced in June at the Apple Developer Conference and was marketed as one of the big new upgrades in iOS11. The update is likely to hit iPhones and iPads sometime in September, along with the release of the iPhone 8, although Apple has not yet confirmed an exact release date for either.

New payments are not compatible with Androids

While there are many other apps that can be used for peer-to-peer payments, the tight integration of Apple Pay with the rest of the company’s software means that it is a seamless solution for any iPhone or iPad user. There are no requirements for additional accounts to be set up and applied for since it is going to be fully integrated into the operating system using the user’s Apple ID. However, it will mean that payments will only be available to other Apply Pay users. The system does not cross-collaborate with Android or Windows users. Both users in a transaction need to be on iMessage.

The US first to get new Apple Pay

The upgraded application within iOS11 will only be issued to US users initially, much as the original Apple Pay was when it was first launched. So only US Apple Pay users will have the ability to send peer-to-peer payments while they try the system. It can be used on the iPhone, iPad, or Apple Watch, and payments can be made using either iMessage or Siri, although the other user does need to have an active iMessage account. Once a user receives the payment, it is immediately converted to an Apple Pay Cash Card.

Cash Card works like a virtual bank account

The Apple Pay Cash Card lives inside the Apple Wallet, and can be used like a gift card to make payments for goods and services, both online and in stores. The major advantage here is that payments are sent and received instantly, making Apple Pay now a virtual bank account. You can also get money as a Cash Card even if you are not yet signed up for Apple Pay. And you need to do nothing to set it up once you get the payment. Once the payment is received through iMessage, it automatically generates an Apple Pay Cash Card on your iPhone or iPad. And it can be used to make payments as a tap-to-pay system of contactless payments.

Security is better by using off-device accounts

Money received can be used at any Apple Pay-enabled location, such as coffee shops, retail stores, etc., or it can be used online. When making an online payment through the device, the Apple Pay Cash Card will automatically ask if you wish to use it first. And there is no need to sign into another service to use it since it is part of the Apple operating system. Once a payment has been made, and the Cash Card created, it can then be transferred to a bank account or credit card linked to your Apple Pay account. And since the Cash Card lives off-device, in a dedicated server, it can be used across multiple devices and can be blocked if a device is lost or stolen, making your money even more secure.