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A group of Venmo and Square Cash users team up to complain about fees instant transfer and the industry's mistrust of cryptocurrency in a seemingly frivolous lawsuit filed against Apple.
The entire claim in the lawsuit is based on the idea that Apple's App Store rules operate as a horizontal competition agreement that violates antitrust laws. Essentially, since Apple requires peer-to-peer cryptocurrency transactions to go through an exchange, it has given itself, Block, PayPal, and Google Pay an edge over the alternatives.
Four consumers are suing Apple on the grounds that the company violated US antitrust laws through its App Store rules, according to a Reuters report. By requiring cryptocurrency exchanges to go through an intermediary such as Coinbase, Apple has allegedly created a system that eliminates competition and encourages ever-increasing transaction fees.
The lawsuit itself seems to suggest that fees are being charged across the board by Apple Pay, Venmo, and the rest. However, fees are only charged in certain situations, such as when requesting an instant transfer or using funds through a debit card linked to an account.
Apple Cash's instant transfer fee is 1.5%, with a minimum of $0.25 and a maximum of $15. You will have to make an instant transfer of $1,000 to receive the maximum commission of $15.
An alternative option is to wait one to three business days for the transaction to be normally transferred to the user's bank.
As an alternative, users using an older system such as MoneyGram have to pay much higher fees for much less convenience. Fees start at around $9 for transfers of around $500 and go up to $17 per $1,000.
Damus and Zeus are frequently mentioned in the lawsuit. These cryptocurrency-focused apps were rejected due to Apple App Store rules.
Convenience costs money, despite this claim claim
It appears that plaintiffs want to transfer money instantly with little or no fees, which is probably not feasible. As described in the lawsuit, banks that process quick transfers must process the transactions using short-term lending to cover the transfer until the transaction clears — which does not come for free.
The lawsuit includes a brief history of peer-to-peer payment systems, but does not include the billions lost by consumers relying on cryptocurrency, a pyramid scheme proposed by cryptocurrency and web3 called NFTs, and currency volatility. , making meanings unknowable every minute. The legislation is moving slowly, but it is incredible to see how the history of cryptocurrency does not mention the recent collapse of one of the industry's largest exchanges and the lawsuit against Sam Bankman-Fried.
The plaintiffs are demanding that Apple provide users with a Wild West-style currency exchange option without intermediaries, without FDIC insurance and without any security measures. The perfect place for behind-the-scenes dark web deals involving drugs and illegal pornography, now available in Apple Wallet.
Convenience fees exist for a reason and are growing along with the market. Expecting otherwise is a mistake that can be corrected with some education rather than a costly and frivolous lawsuit that will likely fail.
The lawsuit takes wild readings, from including part of a whitepaper about Bitcoin to calling the peer-to-peer marketplace an “Apple-led cartel.” The plaintiffs are asking for a jury trial, for Apple to pay the lawsuit and attorney's fees, and for anyone who has used the Venmo or Cash apps since November 17, 2019 to be reimbursed for all transaction fees.