Apple Pay is a mobile wallet app for the Apple Watch iPhone 6, and iPhone 6 Plus (apple.com/apple-pay/), which uses the latest iPhone NFC capability in combination with the built-in fingerprint scanner that allows customers to pay for products using their phones at physical retail stores and in some of the iPhone apps.
Apple Pay users must first enter their card information into the iPhone’s Passbook application before they can use the service. The card information is then tokenized and stored, and then you can use Apple Pay to make purchases anywhere that has NFC-enabled credit card terminals by simply tapping their phone.
Apple Pay is destined to compete with services that are similar like Android Pay or Google Wallet.
Features of Apple Pay
Apple Pay provides one of the easiest transaction experiences of all the available smartphone mobile wallets that are available. The process is as follows: Hold the phone against an NFC-compatible terminal, when you are promoted put one finger on the iPhone’s home button, then wait for the transaction to finish. It takes only a few seconds from start to finish and you do not have to unlock your phone, choose a card, or enter a PIN.
The iPhone’s Touch ID feature is easier to use than anything prior, verifying the user’s identity using a preauthorized fingerprint. Theoretically, it is not possible for Apple Pay to process a payment without the approved user of the phone holding the device. Because of this, you can set a default card for all of your transactions and trust your iPhone to automatically interact with all NFC-enabled payment terminals, since no payment is going to happen without your fingerprint.
Apple Watch users can use Apple Pay by simply double-tapping their watch’s side button and then holding the watch up to a contactless terminal until the transaction completes. During the initial setup, Apple Watch owners are required to set a PIN so that they can access the Apple Pay app. Every time you remove the watch from your wrist and then put back on, you will need to enter the PIN you created in order to use Apple Pay. This will aid in stopping the unauthorized use of the app while at the same time minimizing how often you will have to enter your PIN.
Apple Pay is compatible with almost all of the major card issuers. This includes Bank of America, American Express, Capital One, Citibank, Barclaycard, Chase, Wells Fargo, Navy Federal Credit Union, USAA, US Bank, and PNC. In addition numerous regional banks and credit unions are also supported; however, at this time not every card-issuing bank is compatible with Apple Pay.
As already mentioned, Apple Pay requires either a PIN or the fingerprint of the authorized user to process a payment, which makes it not possible for a thief to actually commit fraud unless they can somehow fool the fingerprint scanner o know the PIN, which is highly unlikely. In addition to the required identification for each in-store transaction, Apple Pay lets you remotely deactivate their Apple Pay accounts should a theft occur. This is a secondary countermeasure against unauthorized users making one-touch in-app or online purchases with Apple Pay.
If a thief gets access to the user’s phone, the user’s credit card aren’t going to be compromised since Apple does not store any card data on the device. Rather, Apple Pay tokenizes every card’s data, and it is replaced with a chain of letters/numbers on its own is meaningless but Apple is able to decode it and the card networks. So should in the unlikelihood of the actual token being intercepted, it will be of no value to the person who obtained it illegally.
Apple Pay is a fairly new service, so there it is hard to find any feedback about it – either positive or negative. Those reviewers you can find recognize that it is a helpful payment method and that it operates in the manner they claim, but time and again they do cite that the main drawback is the lack of participating locations. Most of the reviewers also comment that there is a need for major improvements to the loyalty card integration, and it appears that there is some discrepancy with the way that Apple Pay interacts with various terminals—for example, confirm payment and tip interfaces prompts.
It had been reported by users using the Bank of America cards finding themselves double-charged through Apple Pay, but it would seem the glitch has been corrected. There have also been complaints of poor performance when making a purchase with the app.