Apple agreements with Venmo, Cash App may limit competition in payment app market – Top Class Actions

Apple peer-to-peer payments: Who’s affected?

Do you have an iPhone? Have you paid Venmo or Cash App transaction fees? If so, you may be eligible to join a class action lawsuit investigation.

Apple has agreements with Venmo and Cash App that may prohibit other companies from entering the market. These potential competitors would have been able to push decentralized payment apps to iOS but for Apple’s App Store agreements. If iOS users had the ability to remove middlemen like Venmo and Cash App, they could send mobile payments to each other with no intermediary whatsoever—and with transaction costs far lower than what Venmo and Cash App charge to move money to and from bank accounts and credit cards. But, because Apple prevents developers from creating competing products that would allow free, peer-to-peer payments, consumers are stuck paying fees to apps like Venmo and Cash App.  

Venmo and Cash App charge a variety of fees, such as credit card fees and fees to expedite deposits.

Venmo charges a 3% fee for those using a credit card to send money. It also charges a 1.75% fee on instant transfers and a $2.50 out-of-network ATM withdrawal fee.

Cash App has the same credit card and out-of-network ATM fees, and charges a fee of 0.5% to 1.75% fee on instant deposits. The company also charges a $1 fee for paper money deposits.

Apple, meanwhile, charges Apple Cash users a 1.5% fee on instant transfers.

Apple’s agreements with Cash App and Venmo may be anti-competitive, creating a barrier to entry for other companies to enter the market.

If you are an iPhone user without an Apple Cash account and believe you have been financially harmed by paying a Venmo or Cash App fee, you may be eligible to seek compensation by taking part in a class action lawsuit investigation.