Apple’s Latest Patent Application Focuses on Peer-to-Peer Payments

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EVS analyzes peer-to-peer payments in new blog post

Big box retailers to luxury goods—data breaches happen frequently and to all types of companies. It can be a difficult transition from cash, which omits personally identifying information to credit and debit cards that store data. However, credit cards and debit cards can simplify and expedite payment transactions through mobile payment and digital wallet services, which has the potential to transition into peer-to-peer payments.

Apple Pay launched in October 2014, in an effort to make payments “easy, secure and private way to pay using Touch ID™ on iPhone 6 and iPhone 6 in stores and within apps.” Thus far, it appears that Google Wallet is the other option and is now being revised as Android Pay. However, the distinct differences in privacy and storing data, makes Google not as appealing as Apple. A recent patent filing may convey that Apple is out for a more substantial piece of the payment pie.

The patent filing of peer-to-peer payments is low-key compared to Apple Pay’s launch in the United States and most recently in the United Kingdom, which has more than 250,000 locations. While Apple Pay affects Google Wallet and its new Samsung Pay, there are notable leaders in the peer-to-peer payments like PayPal. 

According to the US Patent and Trademark Office, an overview of Apple’s ‘Person-to-Person Payment Using Electronic Devices Patent application, includes:

“Using electronic devices (such as cellular telephones) that communicate wirelessly, two individuals can make person-to-person payments; in particular, an individual using an electronic device may identify another proximate electronic device of a counterparty in a financial transaction and 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,” the patent states. “When the other electronic device receives the encrypted payment applet, the counterparty may accept the payment in the financial transaction specified by the encrypted payment packet.; then, the other electronic device may provide the encrypted payment packet and another encrypted payment packet (with a financial credential for a financial account of the counterparty, the payment amount and the opposite payment sign) to a third party that completes the financial transaction.”

While filing a patent is important, that does not automatically mean that Apple will get the patent, since it is ready for review. Furthermore, it is unclear if Apple will pursue it if it is granted. Apple and Samsung have a long list of court battles over patents; therefore, the patent can be the difference of entering a market or assuring what a competitor can or cannot do. It will be interesting in the upcoming months to see what results from the patent examination and if this will affect if and what Apple pursues in the peer-to-peer payment sphere. 

Peer-to-peer payment is inclusive to certain industries and even companies. However, online payments are crucial the majority of businesses. EVS can help businesses provide secure online payment processes with various products.