Apple has plunged into the world of mobile payments with the introduction of Apple Pay. This new service is integrated in the iPhone 6, iPhone 6 Plus and Apple Watch. The payment service is designed to allow users to scan tickets, buy merchandise, and even engage in other payment actions by waving their mobile device at the reader.
With Apple Pay, you may no longer need to carry your credit or debit cards around as you can have all of them stored in your Passbook.
How it Works
With the iPhone 6 and iPhone 6 Plus, you don’t even have to open an app to use the service, simply place your finger on Touch ID and hold your phone near the contactless reader. You do not have to look at the screen as a subtle beep and vibration tells you that the information was sent successfully.
For the Apple Watch, hold the face of your Apple watch near the contactless reader and double click the button that is just below the digital crown. You will know your information was sent successfully when you feel a gentle pulse and a beep. This feature will become active in early 2015.
How to Setup
Setting up is easy as all your debit and credit card info can be stored in your Passbook. To get started, you can add the debit or credit card from your iTunes a/c to Passbook by entering the security code of your card.
Use the iSight Camera to add new card information. You could even type it in manually if you wish. The first card you add becomes your default payment card, but you can always change this by going to Passbook settings and choosing another card to be your default.
Security
Every time you add a card to your Passbook, a unique Device Account Number is created and encrypted. This number is then stored safely in a secure element on your iPhone or Apple Watch. Apple does not store these numbers in their servers. When you are making a payment, the Device Account Number, together with a dynamic transaction-specific security code are used to process your payment. This therefore means that your actual debit or credit card numbers never get to be transmitted with payments or shared with merchants.
In case you lose your iPhone, you could always wipe it clean or put it in Lost Mode using Find My iPhone.
You will be able to use Apple Pay in over 220,000 stores that accept contactless payments.
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Location of device — This is based on the phone’s location information independent of the browser (IP address), so the user does not have to have his or her mobile browser application open for this to work; the phone only needs to be turned on. Enterprises may want to check and correlate the location of the device relative to anything else they know about the user’s location through other systems they may interact with at the enterprise. For mobile phones, there are two architectures that are used to obtain location information: One relies on device information (e.g., using the GPS-API applications that the user must opt into); the other employs APIs provided through mobile network operators that don’t require the users to opt in to releasing this information.