Apple is introducing a new kind of service. And it’s all about the wallet. The company is starting with payments, which is a huge business. Currently this whole process is based on this little piece of plastic. We’re totally reliant on the exposed numbers and outdated and vulnerable magnetic stripe interface, said Apple.
All the previous attempts to fix mobile payments have “failed,” Cook said during the keynote. Its called Apple Pay an entirely new payment process. It uses NFC, it’s across the top of the phone. It stores payment information encrypted and securely. It uses the Passbook app too, naturally. You can just use the card you already have on file with iTunes. You can also take a picture of your own credit card and add it. Yeah I’m definitely going to try this with my friend’s cards.
The card numbers are not given to the merchant. It uses a one-time payment number and a “dynamic security code.” If your iPhone is lost, you can suspend all payments via the Find my iPhone service. And you won’t have to cancel your card, either, since it’s not stored on that device anyway. Apple doesn’t know what you bought, where you bought it, and how much you bought it for so the cashier doesn’t get your CC information, either. The key word here is privacy.
The service will start in US with Amex, MasterCard, and Visa. They are also working with the big 6 banks in the US. Apple Pay will also work online, somehow. Apple offers one-touch check out, you don’t have to enter your CC information, billing address, etc. it works in specific shopping apps to start, like Target. Apple just made PayPal look really, really archaic during this key note.
It works on iPhone 6 and 6 Plus, Apple is “working hard” to bring it to more countries. Apple believes Apple Pay will forever change the way all of us buy things.