Apple prepares receipt-scanning bill-splitting feature 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 Apple Cash payment requests. Anticipated to be unveiled at WWDC, this feature will compete with Splitwise, Venmo, and Cash App.

      Apple is introducing a new functionality for the iPhone that allows users to photograph a restaurant bill, distribute individual items among different people, and automatically generate payment requests via Apple Cash. According to Bloomberg's report on Monday, the tool will determine each person's share of the bill, taking into account the costs of items, tax, and tips. Apple plans to announce this feature as soon as next week at its Worldwide Developers Conference and make it available with iOS 27 in the fall.

      Users will be able to access this functionality through the Wallet app and Messages, including an option to approve payments using an Apple Watch. Following the news, shares of PayPal and Block, the owner of Cash App, saw a reduction in their Monday gains. Apple has been in competition with Venmo and Cash App in the peer-to-peer payment space since adding Apple Cash to iMessage, but this bill-splitting feature marks a more direct challenge to the social payments market dominated by third-party applications.

      The importance of receipts

      Apps like Splitwise, Tab, and Settle Up have cultivated dedicated users focused on splitting group expenses. Most require users to manually input amounts, which can lead to errors and complicate the process. In contrast, Apple’s method of taking a picture of the receipt and using image recognition to identify individual items eliminates that manual entry.

      The inclusion of Apple Cash ensures that the entire process, from snap to payment, remains within the Apple ecosystem. Users won’t need to download another app, create accounts with external services, or link their bank cards to a new platform. Since launching Apple Pay in 2014, Apple has been steadily enhancing its payments infrastructure, making the ecosystem more appealing for those who regularly use iPhones for transactions.

      Apple's fintech journey

      This new bill-splitting feature is part of Apple’s ongoing expansion in fintech, which has had varied outcomes. Apple Pay has gained widespread acceptance and is a leading contactless payment method in many regions. Apple Cash's peer-to-peer payments, along with the Apple Card credit card created with Goldman Sachs, a savings account supported by Goldman, and tap-to-pay for businesses, have all emerged from this initiative.

      However, not all initiatives have thrived. The Apple Card partnership has negatively impacted Goldman Sachs’ financial results, leading the bank to seek to offload the business to JPMorgan Chase. Additionally, Apple shuttered its “buy now, pay later” service roughly a year after its launch. This trend indicates that while Apple is eager to explore fintech, it is quick to withdraw when a product falters or partner arrangements become difficult.

      The competitive field

      Splitwise serves as the most direct competitor, having established a loyal user base around the management of shared expenses for households, trips, and ongoing group costs. However, Splitwise requires users to actively engage with the app to manage balances, whereas Apple’s integrated approach could make things simpler for casual situations like splitting a restaurant bill.

      Venmo and Cash App operate on a different level. Both are comprehensive payment platforms offering social feeds, merchant payments, and financial products. As AI-powered banking platforms emerge, the fintech landscape is changing rapidly, but Apple's distribution advantage remains significant; every iPhone has the potential to facilitate bill splitting without the need for downloads.

      This feature is also directed at younger consumers who tend to manage their money primarily through applications instead of traditional banking systems. Globally, mobile payment platforms are vying for this demographic by incorporating financial tools into the apps they use every day, and Apple’s Messages integration places bill-splitting within the conversations that already occur during group dinners.

      Part of a wider iOS 27 update

      The bill-splitting feature is one of numerous enhancements coming to the Wallet app in iOS 27. Apple is also introducing a tool allowing users to create their own digital passes for various events, gym access, and other functions. The Wallet app currently includes features like savings accounts, Apple Pay, and digital keys for vehicles and homes.

      The overall iOS 27 update will emphasize artificial intelligence, featuring a revamped Siri digital assistant, AI-driven photo editing tools, a new Siri camera mode, and performance upgrades. Apple has positioned iOS 27 as a major AI advancement while using Wallet enhancements to subtly bolster its presence in everyday financial services.