Apple Pay

Apple Pay is the new service introduced by Apple this morning, and although it’s something that people have been waiting for for quite some time, it’s pretty exciting that it’s finally here and seems to be worth the wait in terms of design and simplicity of use.

Apple Pay uses NFC (Near Field Communications) to make purchases securely and simply – by holding up your phone to an Apple Pay reader in a store to complete the transaction.

Added to the 220,000 merchants across the United States, Apple has gotten some of the biggest chains and brands to get on board the Apple Pay train – such as Macy’s, Bloomingdales, Wallgreens, Duane Reade, Staples, Subway, Macdonalds, Wholefoods, Disney and Sephora. And, the Apple retail stores. Duh.

So what does this mean for you? Well, Apple is hoping to replace your wallet and put your purchasing power directly in your phone, making it

easier and more secure to make payments.

You simply load Apple Pay with a credit card (and it will work with Amex, Visa, Mastercard and -so far- 6 of the biggest issuing banks along with a few more) from iTunes or by taking a picture of it with the phone’s camera.

Apple will automatically verify with your bank that you are the owner of the card, and then you can go ahead and make purchases. In store, you place the phone near a sensor with your finger on touch iD. Online, stores that will use Apple Pay such as Target, Groupon, Uber and the MLB store, will allow you to make the payments within their mobile apps.

So how is it more secure? It’s a combination of the Touch ID and a new chip called the ‘secure element’ which stores all payment information encrypted. Your card numbers are never actually stored within Apple Pay. With each transaction the only information that is shared with the merchant is a device only account number, a one time only payment number and a dynamic security card.

This means that if your iPhone is lost or stolen, you can use Find My iPhone to suspend all payments BUT you don’t have to cancel the card.

We’re looking forward to this catching on. It’s great forward thinking technology. There will assuredly be some hiccups down the line, but, there’s still hiccups (pretty major ones, Hi Target) with the current credit card system, and that’s some 50 years old. Time to move on, we thinks.

So, hey.. Developers? We were wondering how long it will be until Apple Pay includes Bitcoin?

Apple Pay will launch in October and will be a free update in iOS 8.

Apple Pay guided video

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