Apple introduces mobile payment method Apple Pay

Apple has announced its own mobile payment method called Apple Pay. Contactless payment can be made by holding an iPhone 6 or Apple Watch with a reader in the store, after which the transaction takes place via the wireless technology NFC. Apple Pay comes first in the US.

To use Apple Pay, consumers can use the credit card information they have already entered for iTunes, or they can simply take a picture of their credit card. The information is stored in the Passbook app and according to Apple this is encrypted and secure.

Payment is then made by holding the top of an iPhone 6 or an Apple Watch to a reader in a store. The smartphone uses nfc for the link with the reader and the authentication is done via the TouchID functionality in the home button. Because Apple Pay uses an NFC chip, retailers do not have to install new systems: NFC-based payment points have already been rolled out on a large scale in recent years.

Apple works with credit card companies Amex, Visa and MasterCard, among others, and with six banks. This would cover 80 percent of payment traffic in the US. In addition, 22,000 US stores will support Apple Pay, including McDonalds, Bloomingdales, Starbucks and Wallgreens. Apple Pay will also be available online and GroupOn and Uber will support the service, among others.

The service will be available in the US in October. Apple has not said anything about international support yet, so it is unclear when Apple Pay will come to the Benelux. However, the manufacturer says it is working hard to roll out the service internationally.

Apple emphasizes user privacy and says it does not keep data about transactions. Stores also do not have the user’s credit card information: a one-time payment number is exchanged during the payment, supplemented with what Apple describes as a ‘dynamic security code’.

Images : The Verge and Ars Technica