Apple  (AAPL) announced an update to its Apple Pay app which will allow users to send money to each other via Apple's messaging system. The update now places Apple Pay in direct competition with PayPal  (PYPL) , Square (SQ) and Venmo.

Apple also touted the fact that by the end of this year, 50% of retailers will be compatible with Apple Pay.  

However, TheStreet's Eric Jhonsa writes that the fact that Apple Pay's peer-to-peer payment is restricted to iOS users limits its potentially wide-ranging impact in the digital payment market. 

Follow the latest developments at WWDC with TheStreet's live blog.

Jim Cramer and the AAP team hold a position in Apple for their Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL? Learn more now.

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