Applet Inc. launched a mobile payment service Apple Pay which allows users to make mobile payments through its recently launched devices iPhone 6, iPhone 6 Plus, Apple Watch-compatible devices (iPhone 5 and later models), iPad Air 2, and iPad Mini 3. It works with devices having NFC so iPhone 6 and iPhone 6 Plus will work but older devices like iPhone 5, 5S can work with the iWatch though it doesn’t have the Touch ID security.
Even though, mobile payments have been around for several years, Apple pay is the vital step towards making contactless transactions mainstream and the future of mobile payment is easy, secure and brighter than ever. Any store having NFC-enabled point –of-sale system can work with Apple Pay. The service is launched in US initially and it will be launched worldwide after sometime.
The payments can be made at retail and online stores with the support of various banks, credit card companies, and retailers. The number of banks supporting Apple pay is exhaustive: Bank of America, Chase, Visa, MasterCard, American Express, Wells Fargo, Citi, Capital One and more will be accepting payments through Apple Pay.
How does Apple Pay Mobile payment Service work?
Apple pay works with passbook, which is installed in iPhone devices. You can add you debit or credit cards in Passbook once you launch the app. It will as simple as taking a picture, that would be stored in Passbook or enabling a card which is setup in iTunes for wireless payments.
Once done you can walk into any store swipe your card using iPhone or Apple watch to a payment terminal supporting NFC connectivity, the default card will appear on the terminal or you could select a different one if needed, wait for authorization and walk out of the store. For iPhone 6, you need to authorize the payment by TouchID, fingerprint sensor for approving the transaction while for Apple watch you just need to tap on the button.
How secure is Apple Pay Mobile payment Service?
Of course, security will be a huge concern for the Apple pay users and undoubtedly Apple has taken several measures to ensure the payments are secure and easy.
Apple Pay uses a security feature called tokenization where each credit card’s account number is replaced with a token which is a randomly generated string, before the merchant’s point-of-sale system receives the payment data. The credit card numbers are also stored in a chip on the device called Secure Element, these numbers are not stored on Apple servers and are not used by Apple in any way. Also using tokenization ensures, the random numbers cannot be decrypted to find the actual credit card number. These numbers will only remain in the device. Since the actual account number isn’t shared with the merchant there is no data to steal.
Apple has moved one step ahead of its competitors by using Secure Element and tokenization. NFC is by nature very secure and Apple has also made sure that hackers have less chances to steal data.