Apple Pay Cash drops person-to-person credit card payments, says report

While Apple was showing off its new credit card, the Apple Card, at a splashy event on Monday, it was also quietly making changes to its Apple Pay Cash feature.

Apple Pay Cash is a peer-to-peer payment feature that lets you send and receive money through iMessage. The feature also puts a digital card in your iOS Wallet app to use for purchases in real life. You can add money to the digital card as well.

On Monday, Apple stopped allowing users to send person-to-person payments using a credit card, according an Apple Insider report on Tuesday. The updated terms of service for Apple Pay Cash, which is provided by Green Dot Bank, now say: "Credit cards are not Supported Payment Cards and therefore cannot be used to fund a P2P Transfer or to add funds to your Apple Pay Cash Card."

The changes are coming with iOS 12.2 and watchOS 5.2 updates, and Apple says it'll help users avoid cash advance fees that banks may charge when paying someone with Apple Pay Cash, according to Apple Insider.

The iPhone maker has also added an instant transfer feature that lets users transfer money from Apple Pay Cash to a debit card for a 1 percent fee, according to Apple Insider.

Apple didn't immediately respond to a request for comment.