If hidden code transcripts are to be believed, Photo Id proof may soon be required in order to use the peer-to-peer money transfer feature of Apple Pay. The codes were uncovered while going through the iOS 11 beta by users. This new feature will most likely be called Apple Pay Cash and will be immensely useful in sending money to other iOS users.
How does it work?
Through this feature, iPhone users will be able to use the iMessage app to send money to other iPhone or iPad users. Since this is a completely digital mode of transaction, some form of identity verification is quite natural.
One line in the iOS 11 code shows the message which will be displayed to users when they are asked to present their ID to verify their identities. Another portion of the code instructs the user to position their driver's license or any other ID with photo on the camera's frame.
The code also reveals what may happen in case the user's photo ID does not clear verification. In such a case, users will not be allowed to transfer funds peer-to-peer. However, they can still use the funds to make transactions at retail outlets where Apple Pay is supported. While this feature seems to mainly be included to prevent fraud transactions, there may also be another purpose to it.
Some feel that the photo ID is necessary, so that the person initiating the transaction can prove that they are not minors.
Children have been known to use similar methods to purchase an item using their parent's money without their knowledge. So, this identity verification may be a way to stop kids from taking advantage of the Apple Pay Cash feature.
Features of the system
This latest functionality, which will be introduced in iOS 11 will help pay a certain bill using cash funds or balance that has been stored by the user.
This is quite different from the standard Apple Pay transactions. Normally, Apple Pay uses the person's credit card to settle the transactions. However, here there is an option to pay the entire amount in cash. Through Apple Pay Cash, the user will only be able to transact as much as the cash balance is present on their accounts.
Apple has also revealed that people can link their credit cards for transactions in Apple Pay Cash. However, any transaction from Apple Pay Cash using credit cards will levy a 3 percent additional fee on the entire transaction. It would be interesting to know more about how this feature would work and people will find out soon enough as the iOS 11 is expected to launch in September alongside the iPhone models of the year.
