During Apple’s big iPhone event today, the company unveiled its version of contactless payment. The feature will roll out in October and will be exclusive to the iPhone 6 and iPhone 6 Plus. Cards are added by taking a photo of them and then Apple checks with the credit card provider to authenticate that it is yours. In order to make a payment via Apple Pay, the user does not need to load an app or turn on the phone, instead simply press the Touch ID home button and the phone will gently vibrate to acknowledge successful payment. Apple is also hoping to address security concerns related to contactless payment.
As rumored the device utilizes tokenization to ensure security and your personal information is never seen by either Apple or the business. Additionally, your card information is only stored in a dedicated secure chip on the phone and Apple will not collect any data on spending habits. Apple Pay will work at the over 220,000 locations already accepting contactless payments. The company is also working to with Macy’s and Bloomingdale’s to fully roll out the technology across their stores (Nordstrom was not mentioned despite earlier rumors). Apple Pay is not limited to physical locations though. Apple also is allowing app developers to accept Apple Pay for online purchases within their apps. Among the companies who are already onboard are Sephora, Target, and OpenTable.
