The California-based company has filed a patent that could transform the Apple Watch into a peer-to-peer contactless payment device.
On July 2nd, a patent application was filed by the technology giants, detailing equipment that would allow its customers to transfer money to each other using a combination of wireless, Bluetooth and NFC technology.
The patent states that the technology is suitable for ‘‘electronic devices (such as cellular telephones)’’, but rumours suggest that the Apple Watch will be chosen as the firstdevice to model the P2P system.
‘‘An individual using an electronic device may… provide an encrypted payment packet to the other electronic device that includes: a financial credential for a financial account of the individual, a payment amount, and a payment sign,’’ stated the patent.
In terms of making secure transactions, Apple’s Touch ID security feature will be need to be executed by customers in order for each payment to be authenticated.
Similar P2P payment solutions already exist. In 2010, PayPal allowed iPhone customers to transfer money between each other using its ‘‘bump’’ feature.
Mastercard is working with Stripe to expedite the payment process for American sellers on the latter's marketplaces using the instant payouts feature from Stripe.
Lloyds has launched biometric finger print authentication for mobile banking.
Barclaycard has partnered with Case Station, a company that makes personalised phone cases, to embed contactless technology in the latter's smartphone cases.
Digital challenger bank, N26, which has been live for one and a half years and has more than 200,000 customers, rolled out a new feature that allows its customers to transfer money using Siri. All they have to do is talk to it.