Apple Pay mobile payment system coming next month
Next to iOS 8, iPhone 6 and iPhone 6 Plus, Apple also announced the mobile payments initiative that has been in the rumor mill for a while. This service is called Apple Pay and promises to provide a secure and easy way of storing all the user's credit cards in the iPhone and then using the handset to pay in retail stores that support it.
According to Eddy Cue, Apple’s senior vice president of Internet Software and Services, "Security and privacy is at the core of Apple Pay. When you’re using Apple Pay in a store, restaurant or other merchant, cashiers will no longer see your name, credit card number or security code, helping to reduce the potential for fraud."
This service uses "a groundbreaking NFC antenna design, a dedicated chip called the Secure Element" and Apple's already notorious Touch ID technology, the fingerprint recognition feature introduced with the iPhone 5S. Apple Pay uses a dynamic security code to validate each transaction instead of the card's security code, but this happens only after the actual card number is also replaced by a unique Device Account Number which is encrypted and stored in the Secure Element of the iPhone or Apple Watch.
Apple Pay supports both credit and debit cards from the three major networks, namely MasterCard, Visa, and American Express. Next to Apple's own retail stores, the list of retailers that will support this service at launch includes Disney Store and Walt Disney World Resort, Sephora, Staples, Subway, McDonald's and Macy's.
The service will go live in October, when Apple Pay will be added to iOS 8 as a free update. For more information, please check the press release via the link under the embedded hands-on video below.