New Service Aims to Transform Mobile Payments Industry
Apple today announced that customers can start making payments with the touch of a finger on Monday, October 20, when Apple Pay becomes available in the US. Apple Pay offers an easy, secure and private way to pay using Touch ID on iPhone 6 and iPhone 6 Plus in stores and within apps. Users of the just-announced iPad Air 2 and iPad mini 3 will be able to use Touch ID on their devices for Apple Pay within apps. The new service will be enabled by a free software update to iOS 8.
Apple Pay is designed to protect the user’s personal information. It doesn’t collect any transaction information that can be tied back to a user and payment transactions are between the user, the merchant and the user’s bank. Apple doesn’t collect your purchase history, so when you are shopping in a store or restaurant we don’t know what you bought, where you bought it or how much you paid for it. Actual card numbers are not stored on the device, instead, a unique Device Account Number is created, encrypted and stored in the Secure Element of the device. The Device Account Number in the Secure Element is walled off from iOS and not backed up to iCloud.
Apple Pay supports credit and debit cards from the three major payment networks, American Express, MasterCard and Visa, issued by the top US banks. In addition to American Express, Bank of America, Capital One Bank, Chase, Citi, Wells Fargo and others, who announced support in September, more than 500 new banks from across the country have signed on to Apple Pay. Users can make purchases in stores and within apps, with credit cards issued by many of the leading banks nationwide, which make up 83 percent of the credit card purchase volume in the US.
Checkout is simple and can happen with a single touch—there’s no need to manually fill out lengthy account forms or repeatedly type in shipping and billing information. Your actual card number is kept private and not shared with the online merchant. Online shopping within apps allows users to pay for physical goods and services including apparel, electronics, health and beauty products, tickets and more.
Apple Pay will be available in the US starting Monday, October 20, 2014 with iOS 8.1.