Apple prepares receipt-scanning bill splitter for iOS 27.

      TL;DR: Apple is developing a bill-splitting feature for iOS 27 that allows users to take photos of receipts, allocate items to specific individuals, and create payment requests via Apple Cash. Set to be announced at WWDC, this tool will directly compete with services like Splitwise, Venmo, and Cash App.

      Apple is working on a feature for iPhones that enables users to photograph a restaurant receipt, assign specific items to different people, and automatically create payment requests through Apple Cash. This tool will calculate each person's share of the bill, factoring in item costs, taxes, and tips, according to Bloomberg’s report on Monday from sources familiar with the plans. Apple aims to introduce this feature at its Worldwide Developers Conference possibly next week, and include it in iOS 27 this fall.

      This feature will be integrated within the Wallet app and Messages, with an option for payment approvals from an Apple Watch. Following the news, shares of PayPal and Block, which owns Cash App, fell back from their Monday gains. Since integrating Apple Cash into iMessage, Apple has been competing with Venmo and Cash App in peer-to-peer payments, but this new bill-splitting tool represents a more direct challenge to the social payments sector dominated by third-party applications.

      The significance of receipts

      Apps like Splitwise, Tab, and Settle Up have established dedicated user bases for the specific issue of splitting group expenses. Most require users to enter amounts manually, leading to potential errors and complications. Apple's method of photographing the receipt and using image recognition to capture individual items eliminates this manual entry.

      The integration with Apple Cash ensures that the complete process—from taking a photo of the bill to receiving payment—remains within Apple’s ecosystem. Users won't need to download a separate app, set up an account with a third-party service, or link a bank card to a new platform. Since launching Apple Pay in 2014, Apple has consistently expanded its payment capabilities, making the ecosystem more appealing for users who rely on iPhones for daily transactions.

      Apple's fintech history

      The development of the bill-splitting feature is part of Apple's fintech expansion, which has shown mixed outcomes. Apple Pay is widely accepted and has become the leading contactless payment option in many regions. Other initiatives, such as Apple Cash for peer-to-peer payments, the Apple Card in collaboration with Goldman Sachs, a Goldman-backed savings account, and tap-to-pay for businesses, have followed.

      However, not all initiatives have succeeded. The partnership with Goldman Sachs for the Apple Card has negatively impacted the bank’s financial performance, prompting efforts to transfer the business to JPMorgan Chase. Apple also ceased a “buy now, pay later” service about a year after launching. This pattern indicates that while Apple is keen to experiment in fintech, it is also willing to withdraw quickly if a product struggles to gain traction or a partnership falters.

      The competitive environment

      Splitwise represents the most direct competition, having built a dedicated user base focused on tracking shared expenses across households, trips, and regular group costs. However, Splitwise necessitates that users actively use the app to manage balances, a process that Apple’s integrated solution might streamline for everyday situations like splitting a restaurant bill.

      Venmo and Cash App operate at a different scale as comprehensive payment platforms featuring social feeds, merchant payments, and financial products. The fintech landscape is evolving quickly, particularly with the emergence of AI-driven banking platforms, yet Apple's distribution advantage stands out—every iPhone has the potential to be a bill-splitting tool without requiring an additional download.

      This feature is also aimed at younger consumers who typically handle money through apps instead of traditional banks. Globally, mobile payment platforms are vying for this audience by incorporating financial tools into the apps they already use daily, and Apple’s integration with Messages places bill-splitting where group dining discussions naturally occur.

      Part of a larger iOS 27 update

      The bill-splitting feature is one of several enhancements for the Wallet app in iOS 27. Apple is also set to introduce a tool for users to create their own digital passes for events, gym access, and more. The Wallet app already supports savings accounts, Apple Pay, and digital keys for vehicles and homes.

      The wider iOS 27 update will highlight artificial intelligence, an upgraded Siri digital assistant, AI-driven photo editing features, a new Siri camera mode, and performance enhancements. Apple is positioning iOS 27 as a substantial upgrade focused on AI while using the Wallet additions to solidify its role in providing everyday financial services.