Apple’s new Mobile Payment System is up and running. Here are five of the most common queries from the consumers and their answers.
What is Apple Pay?
Its Apple’s entrance into the growing field of Mobile Wallet system that lets you pay for purchases at the payment counter using just your iPhone. Apple Pay currently works with iPhone 6 and iPhone 6 Plus and eventually with the Apple Watch. More than two hundred thousand stores such as McDonald’s, Whole Foods, Macy’s, The Sports Authority, Office Depot and several others participated in this program. So it’s less than almost 12% of the 12 million to 15 million merchants that accept plastic cards.
How does Apple Pay work?
To set it up in iPhone 6 or iPhone 6 Plus you either need to take a picture of your credit card or you may need to enter the information manually. Then just hold your phone near the card reader at a participating store and confirm payment with your finger print on the Touch ID of your iPhone. Three of the major Credit Card issuers like MasterCard, VISA and American Express and several other banks like Bank of America, Capital One, Chase, Citi are behind the technology.
How is Apple Pay different from others?
There are several mobile wallets out in the market. So how is Apple Pay different? In some ways it’s surely not. It uses the Near Field Communication (NFC) technology which is used in two mobile wallets already out in the market – Google Wallet and Softcard. They just store your encrypted credit card number and information either on a server or on the phone itself. The big difference between Apple and the others is that Apple says it does not store your account information anywhere. This is the most important feature where Apple stands out.
Is Apple Pay safe enough?
Credit security is a serious concern for consumers. There have been reports of lots of high profile hacking incidents at major retailers like Target and The Home Depot. The most important security factor in Apple Pay is that it does not store credit card information in the phone or server; instead Apple Pay creates dummy account numbers for each transaction. If a hacker gets to it then the dummy number is simply useless. No one can even get your name, your real card number or the card security code.
What’s the conclusion?
By the end of 2015 merchants are supposed to update their card readers to accept cards that have chips inside. Those card readers will also be NFC compatible. This transition along with Apple Pay could be the kick-start to get retailers and consumers on board.
Hope this post helped you a lot in deciding whether to use Apple Pay or you stick to your plastic cards. Subscribe to our blog and stay updated on all the upcoming and recent mobile technology and software updates.Google+