Apple has been working on its version of an e-wallet, using the iPhone, of course. There are a few theories of how it will actually be applied in real life.
How does it actually work?
Here’s the scenario, based on information culled from the web. All Apple Pay users have to do is tap their phone on the credit card terminal, scan your finger on the Touch ID button, and the transaction will be complete.
When you pay in a physical store, you swipe you phone near a “reader” but if you buy online, you use Apple’s fingerprint sensor/scanner to initiate the transaction.
Check out this video, it makes it all look very easy!
Is it secure?
At the heart of the Apple Pay system is an actual chip which facilitates secure information exchange. At the moment, it is only available in iPhone 6 and 6 Plus.
Each time a user initiates a transaction, the secure exchange system generates a random, unique code instead of transmitting the user's debit or credit card number, which then gets sent back to the chip. The chip then relays the information to the point-of-sale system to conclude the transaction.
Can we expect a future where we will be able to use Apple Pay for ordering taxis through Uber and paying for our online groceries?
In the US, Apple is certainly working with major credit card companies and banks to facilitate the banking/financial side of things. It has also secured across America some 220,000 vendors to kick off its launch soon. They include department stores Macy’s, Bloomingdales, and fastfood chain McDonalds.
Apple Pay is likely to be launched Oct 18, based on an internal memo (reported by Macrumours) sent to store managers at Walgreen Company, telling them to be ready to deal with customer queries on Apple Pay.
Check out the different articles below to learn more about how the Apple Pay system works; the security issues consumers are worried about; and the process involved in setting up credit cards on the iPhone.