Apple today announced the release of watchOS 4.2 now supports Apple Pay Cash, Apple’s peer-to-peer payments service allowing users transfer money between themselves.

Apple Pay Cash is already available in iOS 11.2 and can be used to send or receive money through the Messages app on the Apple watch and the iPhone.
Apple Pay Cash works by accessing one of the debit or credit cards you already have in your wallet and sending the payment from your device to the receivers device and the Apple Pay Cash card which is stored on the device (more specifically their Apple ID part of iCloud).
And then the balances of these can be used just like cash! Read more on the Apple website as it does require setting up: https://support.apple.com/explore/apple-pay-cash
The update also includes some new features for HomeKit including taps (faucets), and some extra features are now available to third party apps that, were previously only accessible to Apple’s own OS and apps.
There are also some minor bug fixes included in watchOS 4.2 including one that stopped timers being cancelled independently, useful if like me boiling an egg can be a challenge!
To download watchOS 4.2 open the watch app on your iPhone. You will also have to have over 50% charge on the watch battery , the watch needs to be on charge and of course in range of your iPhone.
Read more on watchOS here: https://www.apple.com/watchos/
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Summary
Apple today announced the release of watchOS 4.2 now supports Apple Pay Cash, Apple's peer-to-peer payments service allowing users transfer money between themselves.
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