Manufactured Spending

Apple Pay Peer-to-Peer – A New Manufactured Spending Method?

Apple Pay
Written by Charlie

When Apple Pay was announced last year, there was still some curiousity at the time as to what would work for valid payments and how the system would work for those of us interested in generating miles and points. For me, I had hopes that they would actually let you load your Apply Pay account with iTunes gift cards. With iTunes gift cards available through various sales for at least 20% off (and sometimes 50% off or more), that would have been awesome!

Apple Pay Peer-to Peer

Apple Pay

Could Apple’s new peer-to-peer system be an avenue for manufactured spend? Photo from

However, that was not to be. But, now a patent has been applied for by Apple for a peer-to-peer payment system that would utilize the Apple Pay system. Apple Pay does not allow for the addition of prepaid gift cards so that is currently not an option, but using credit cards certainly is a big part of the Apple Pay system.

Other peer-to-peer payment systems have popped up and all charge payment processing fees that eliminate them as viable manufactured spending options. But, Apply has enough clout that they have been able to negotiate (reportedly) payment discounts with American Express, Bank of America, Capital One, Chase, and Citi. Obviously, they would really want to draw iPhone users to using them for peer-to-peer payments and would probably need to do more than simply advertise the convenience. One area they could do that is by offering lower transaction fees, if they do indeed allow the use of credit cards for the peer-to-peer payments.

A New Manufactured Spending Option?

If the fees were low enough, it could be an attractive alternative to some other manufactured spending methods, even if the fee costs more per point than the other methods. Not everyone has the time to do what may be necessary to manufactured miles and points at a cheap rate. For a little bit more to eliminate that inconvenience would be a great way to do it! If this would not work as a long-term manufactured spending option, it still might work as a great tool for meeting minimum spending.

What do you think? Might Apple introduce a consumer system that would be attractive for manufactured spending?

HT: Venture Beat

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About the author


Charlie has been an avid traveler and runner for many years. He has run in marathons around the world for less than it would cost to travel to the next town - all as a result of collecting and using miles and points. Over the years, he has flown hundreds of thousands of miles and collected millions of miles and points.
Now he uses this experience and knowledge to help others through Running with Miles.