Apple is introducing significant changes to its Apple Cash service, particularly with the upcoming iOS 18 and watchOS 11 updates. The new “Tap to Cash” feature, set to debut this fall, will enable users to exchange Apple Cash simply by holding their iPhone or Apple Watch near another supported device. This method of peer-to-peer (P2P) payment marks a convenient evolution in how users can transfer money, but it comes with stricter identity verification requirements.
Starting October 4, 2024, Apple will enforce new rules that require users to verify their identity when sending more than a total of $500 in P2P transfers, which includes using Apple Cash via Messages or the new Tap to Cash feature. This verification process is mandatory whether the funds are sent from an Apple Cash balance or a supported payment card in the Wallet app. Notably, this $500 threshold applies cumulatively, taking into account both past and future transactions. Tap to Cash, as described by Apple:
With Tap to Cash, users are able to send and receive Apple Cash by holding two iPhone devices together — without having to share phone numbers. For example, Tap to Cash can be used to pay someone back at dinner or buy something at a garage sale.
The identity verification process for Apple Cash involves submitting a photo of a government-issued ID, such as a driver’s license, along with personal information like home address, date of birth, and social security number. This requirement aligns Apple with regulatory standards set by the Financial Crimes Enforcement Network (FinCEN), which mandates that financial institutions adhere to “Know Your Customer” (KYC) and anti-money laundering (AML) practices.
In addition to these changes, Apple has clarified that the weekly P2P transfer limits will now apply to both sending and receiving funds. Moreover, Apple Cash is expanding its device support to include the Vision Pro headset, further integrating the service across Apple’s ecosystem.
While these changes may feel restrictive to some users, especially those who are wary of sharing personal information, they are necessary adjustments in today’s regulated digital finance landscape. The new rules ensure that Apple Cash remains a secure and compliant service as it continues to evolve with features like Tap to Cash.
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