Apple Pay – Promising Payment Technology

Apple Pay is Apple’s new mobile payment service, through which user can make payment using iPhone or mobile phone. Apple Pay is hope for giving a best mobile wallet solution.  Apple Pay allow users to make one-tap purchases within apps that have integrated the Apple Pay API. To manage transactions security, Apple uses a method known as “tokenization,” limiting actual credit card numbers from being sent over the air. The aim is to replace the wallet with Apple Pay, and the one-step process prevents from carrying a purse or wallet having credit cards. As NFC technology is existing in it, Apple Pay will work anywhere NFC-based contactless payments are accepted. Here are few thing on how things go with Apple Pay.

How it work?

Once a credit or debit card has been added to Passbook, Apple Pay is ready to use. In a store, when approaching a point-of-sale system compatible with Apple Pay, the screen of the iPhone 6 or 6 Plus will arrive and automatically opens Passbook, where a user can tap on a credit card to use or pay with the default card. While, in some stores, users will be asked for a PIN code or to sign for a purchase, but in other locations, Apple Pay check-out seems to be an easy one-step process. Apple Pay may not be as convenient as swiping a card, still it’s very important to recognize that Apple Pay is more secure than a traditional card transaction. Whereas in Apple Pay, a cashier is not able to see a name, credit card number, an address or any other personal information.

Here, stores also don’t receive a credit card number (as credit card numbers are replaced with unique Device Account Numbers) so that store security breaches that leak credit card numbers will not affect Apple Pay users.

Apple Pay Settings

After installing iOS 8.1, the Passbook app can be setup in Apple Pay. On tapping the “+” icon in Passbook will allow you to add a credit or debit card to Apple Pay, either selecting a card that is already on file with iTunes or scanning one within the camera. Passbook is a key component of Apple Pay.

In just a few seconds, the credit cards are verified but some cards require an app download, a phone call, or an email to verify a card before added to Apple Pay. Once the card is verified, it is instantly available for purchases both in stores and within apps. At a time, eight cards can be registered with Apple Pay. Apple Pay can be managed in the Settings menu, found in the new “Passbook and Apple Pay” category. Each and every credit card added to Passbook is listed here, along with information like email, billing address and phone number. Just tapping on a card, offers specific information like last digits of the card number, last digits of the Device Account Number which replaces the card number in transactions, and also gives contact information for the bank who has issued the card. Apple Pay is only available in apps which have adopted the Apple Pay API and to make a payment in a retail store, the shop will need to support Apple Pay directly or allow NFC payments.

Appropriate Device

Currently in stores Apple Pay is limited to the iPhone 6 and the iPhone 6 Plus, both of them contain near-field communication (NFC) chips which have not been incorporated into previous-generation iPhones. Apple Pay purchases app only with the iPhone 6, 6 Plus, the iPad Air 2, and the iPad mini 3, all of which have Touch ID.

Apple Pay will also work for Apple Watch, the company’s wrist-worn wearable device that is now available. The Apple Watch, which doesn’t function without an iPhone, will allow owners of older iPhones, including the iPhone 5, 5c, and 5s, to use Apple Pay.

Security

Apple assured to their iPhone owners that their payment information is safe by putting heavy emphasis on security when advertising Apple Pay, in fact, it is much safer on an iPhone than inside a wallet.

The iPhone has a special dedicated chip called Secure Element which contains all of a user’s payment information, credit card numbers and data are never uploaded to iCloud or Apple’s servers. When a transaction is done, the Device Account Number is sent via NFC, with a one-time dynamic security code unique to each transaction, both are used to verify a successful payment. The dynamic code of security is a one-time use cryptogram which replaces the credit card’s CCV and is used to ensure that a transaction that is conducted from the device contains the Device Account Number.

Further, if your iPhone is lost, the owner can utilize “Find My iPhone” to suspend all payments from the device, without doing credit card cancellation process.

Let us know if you want to integrate Apple Pay in your application, we are happy to help you.