iPhone 6 introduces Apple Pay turning your phone into your wallet
With the iPhone 6, Apple is taking on mobile payments in a big way. Every day Americans make 200 million transactions using credit cards. Apple wants to simplify that. Rather than take your card out of your wallet or purse and swipe it in the machine with every purchase, the iPhone 6 allows you to simply swipe your phone over a sensor at the point of sale. Your payment is made using your preexisting credit cards.
Using the iPhone 6 and 6+'s NFC antenna and Touch ID Apple is able to quickly and securely process payments. Your personal data is protected by their new Secure Element chip, which encrypts your information so it cannot be accessed without your approval.
Your cards are saved in Passbook. You can easily add the cards already stored on your iTunes account, or add new cards using the iSight camera. Cards in passbook are saved without showing the whole credit card number. Apple doesn't store the credit card number or give it to the merchant. They use a secure, onetime payment number, that change with every purchase. If you lose your phone you can cancel payments to the phone rather than having to cancel all your cards like you do when losing your wallet.
Apple is emphasizing privacy with this feature. They don't know what you bought, where you bought it, or for how much money. The cashier won't see your name, number, or security code, as he does when you hand your card over.
At launch they'll have partnerships with Mastercard, American Express, and Visa. Currently they're working with the banks and companies that handle 83% of all credit card purchases. Major stores like Subway, Walgreens, Staples, Whole Foods, and McDonalds have already committed to the technology. The later is actually adding Apple Pay to their drive through.
Online payments, 1billion dollars a day 5 million transactions. One-touch checkout for online retailers, using your iOS device. Makes shopping on iOS easier than ever. Target, Uber, Groupon, Panera take out, MLB tickets, the Apple Store are partnering with Apple to use the service on their sites. Service like Open Table will allow you to make reservations and pay for your meal, all from your phone.
It launches in the US in October of 2014, with more countries to follow soon after.
