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.
Whitepapers
Related reading
5 ways blockchain can change the cross-border payments landscape
Cross-border payments is a changing sector of the industry, driven by customers demanding little to no friction and encountering multiple steps, intermediaries ... read more
The SME technology revolution | video
The UK is home to 5.4m micro SMEs that have fewer than nine employees, according to the House of Commons library. They ... read more
JP Morgan blockchain network showcases banks’ DLT progress
JP Morgan’s expansion of its blockchain-based interbank payments project signals that major banks are stealing a march on disruptors and startups by ... read more
Security a priority for EU’s INATBA blockchain taskforce
The European Commission’s new blockchain initiative, the International Association for Trusted Blockchain Applications (INATBA), should focus on quashing extant security concerns around ... read more
