One of the biggest announcements by Apple on Tuesday was the Apple Pay. Apple has brought a new revolution in contactless payment technology by introducing the short-range wireless technology known as Near Field Communication (NFC).
The new iPhone 6 and iPhone 6 plus are equipped with the NFC chip and if you have older iPhone flagships, specifically the iPhone 5, iPhone 5s and iPhone 5c you are not left out since the new Apple Watch is is NFC-enabled which will enable you to pay using Apple Pay.
As the contactless payment technology evolves, one of the major concern to the customers is the security of their data. Apple promises that you will use your iPhone 6 to pay in an easy, secure, and private way.
Every time you hand over your credit or debit card to pay, your card number and identity are visible. With Apple Pay, instead of using your actual credit and debit card numbers when you add your card a unique Device Account Number will be assigned, encrypted and securely stored in the Secure Element, a dedicated chip in iPhone.The Device Account Number alongside a transaction-specific dynamic security code is used to process your payment. So your actual credit or debit card numbers are never shared with merchants or transmitted with payment. This makes it more secure than Credit card.
Apple Pay works with most of the major credit and debit cards and there this brings the aspect of interoperability.
Apple CEO Tim Cook said during the presentation that Apple’s vision is to replace a wallet, and more specifically to replace antiquated, plastic credit cards. So, all we can do now is wait for the product to be rolled out in October even as more banks and stores subscribe to this revolutionary product.
Below is a YouTube video from C-NET.