Illustration: Aïda Amer/Axios

An ideal payment mechanism should do 2 things: It should take place in real time, and it should clear at par.

That's how cash works. If you give me $50 in cash, then I immediately become $50 richer, and you immediately become $50 poorer.

  • Checks fail the test: They clear at par (the amount you pay is the same as the amount I receive), but they can take many days to do so. Much the same thing happens when you transfer money from Venmo to your bank account.
  • Venmo Instant Transfer also fails the test: If I use it to move money from my Venmo account to my bank account, the transfer happens immediately, but the amount I receive will be 1% lower than the amount I send.

The new Apple credit card became reality this week — but, like all credit cards, it too fails the test. Getting the card onto your phone is easy, but if you pay a merchant $100, they receive significantly less than $100.

  • The Apple Card is a "World Elite" Mastercard, which carries the highest possible interchange fee in all circumstances. That fee, which can range as high as 3.25% plus 10 cents, is taken off the top of any payment before the merchant receives anything. The fee is the same whether you use the physical Apple Card or the virtual one on your phone.
  • The Apple Card is the first card without an annual fee to get World Elite status, payments consultant Richard Crone tells Axios. And it's almost certainly the first to get issued to subprime borrowers.
  • Apple controls about 2/3 of all contactless payments in the United States, estimates Crone — which means that if the Apple Card starts to dominate the Apple Pay ecosystem, contactless payments in general are going to be very expensive for merchants.

Everybody loves instant payments. As rapper A1 told the WSJ: "In this industry, you got clubs. You got bottles. You got models. You have strippers. They want to get paid right away." But the instant payments system built by some of America's largest banks, known as RTP, has struggled to gain traction. Even if banks have it, they don't tend to use it.

Driving the news: The Federal Reserve announced its own instant payments system this week, which is due to arrive in "2023 or 2024." What happens then is anyone's guess.

  • 25 countries already have instant payments, including the U.K., Switzerland, India and China. There, the fast-and-on-par ideal is already a reality. Will American banks similarly embrace a system that allows anybody to send money from any bank account to any other bank account, immediately and at par, without the recipient having to sign up for anything? I'm not holding my breath.

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Trump tightens screws on ByteDance to sell Tiktok

Illustration: Aïda Amer/Axios

President Trump added more pressure Friday night on China-based TikTok parent ByteDance to exit the U.S., ordering it to divest all assets related to the U.S. operation of TikTok within 90 days.

Between the lines: The order means ByteDance must be wholly disentangled from TikTok in the U.S. by November. Trump had previously ordered TikTok banned if ByteDance hadn't struck a deal within 45 days. The new order likely means ByteDance has just another 45 days after that to fully close the deal, one White House source told Axios.

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Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 9:30 p.m. ET: 21,056,850 — Total deaths: 762,293— Total recoveries: 13,100,902Map.
  2. U.S.: Total confirmed cases as of 9:30 p.m ET: 5,306,215 — Total deaths: 168,334 — Total recoveries: 1,796,309 — Total tests: 65,676,624Map.
  3. Health: CDC: Survivors of COVID-19 have up to three months of immunity Fauci believes normalcy will return by "the end of 2021" with vaccine — The pandemic's toll on mental health — FDA releases first-ever list of medical supplies in shortage.
  4. States: California passes 600,000 confirmed coronavirus cases.
  5. Cities: Coronavirus pandemic dims NYC's annual 9/11 Tribute in Light.
  6. Business: How small businesses got stiffed — Unemployment starts moving in the right direction.
  7. Politics: Biden signals fall strategy with new ads.

Harris: "Women are going to be a priority" in Biden administration

Sen. Kamala Harris at an event in Wilmington, Del. Photo: Drew Angerer/Getty Images

In her first sit-down interview since being named Joe Biden's running mate, Sen. Kamala Harris talked about what she'll do to fight for women if elected VP, and how the Democrats are thinking about voter turnout strategies ahead of November.

What they're saying: "In a Biden-Harris administration women are going to be a priority, understanding that women have many priorities and all of them must be acknowledged," Harris told The 19th*'s Errin Haines-Whack.