Apple Introduces Apple Pay for iPhone 6 and iPhone 6 Plus
Apple today announced a new payment system that is called Apple Pay. Apple Pay is available as a payment option using the new iPhone 6 or iPhone 6 Plus. According to Apple CEO Tim Cook, every day in the United States $12 billion is spent in over 200 million credit card transactions. He discussed the difficulty of using credit cards today and the fear that consumers have in losing their cards (or card data). Apple Pay is built using a combination of TouchID, NFC and a Secure Element on the device to allow you to use your iPhone to make secure purchases.
When you open passbook on an iPhone 6 or iPhone 6 Plus, you have the option of using a credit card that is already stored in iTunes or adding a new credit card. Your credit card number is not actually stored on the device, instead when you register a new card, a token is stored on your device that dynamically changes. If you lose your device, you can use Find My iPhone and it disables payments using your iPhone.
It will start in the US using American Express, Mastercard and Visa. It will work with the top 6 banks in the US to begin with and will work with 83% of cards (your bank must be a partner in order to use Apple Pay). Retail partners include Walgreen’s, CVS, Subway, Toys R’ Us, Macy’s, Panera, McDonalds, Disney and Apple Retail stores to begin, with more to come. It will be as easy as touching your device to the payment terminal to make payments.
Loyalty programs are also being added to Apple Pay. You will be able to use third party apps from Target, Groupon and OpenTable to make payments through Apple Pay. The goal is to make it as easy as possible to make purchases without having to touch your actual wallet.
Apple Pay is a new service that Apple hopes will revolutionize the way that you make payments. More to come….