Lily Greenwood
Lily Greenwood
Senior Digital Account Exec
14.10.14

Leading the way with Apple Pay

Apple’s mobile payment service ‘Apple Pay’ will be launched this weekend across major retailers in the US. It’s primed to be one of the most safe and convenient digital payment services to hit the market.

The new service works through Radio-Frequency Identification (RFID) technology, allowing iPhone 6 and iPhone 6 Plus users to simply tap their phone on contactless readers. With the built in Near Field Communication (NFC) technology there is no need to open an app or wake up the phone as the device knows that a reader is available. You just put your iPhone by the sensor and your finger on the Touch ID fingerprint scanner, then that’s it, you’re done.

Payment partners confirmed for launch include: Visa, MasterCard, American Express, Bank of America, Capital One, JPMorgan Chase, Citi, and Wells Fargo. Linked with Apple ID accounts and Passbooks, users can store their credit and debit card details straight into their phone. Apple on their website promotes their service as being more secure than the traditional method of physically handing over your card:

“With Apple Pay, instead of using your actual credit and debit card numbers when you add your card to Passbook, a unique Device Account Number is assigned, encrypted, and securely stored in the Secure Element, a dedicated chip in iPhone. These numbers are never stored on Apple servers. And when you make a purchase, the Device Account Number, along with a transaction-specific dynamic security code, is used to process your payment. So your actual credit or debit card numbers are never shared by Apple with merchants or transmitted with payment.”

According to Apple this new format of payment creates security measures that prevent any fraudulent activity – the users’ details are perfectly safe as the card details aren’t actually stored on any Apple servers. This new system is called ‘Tokenization’ and is the key to increasing security measures and in turn building consumer trust.

US retailers such as McDonalds, Walgreens, Petco, Subway and Macy’s have all been confirmed to support the service when it launches. Many retailers have expressed interest in adopting the technology in stores as it’s perceived in the industry as a way of enhancing the user’s shopping experience.

So, how does this apply to us guys in the UK? Online speculations anticipate a release date of 2015, still quite a wait for all those new iPhone 6 users. However, if trends continue then predictions say that this new technology may be a big success on our side of the pond. The UK Cards Association found that contactless payments as of June 2014 had increased by 225.8% from the previous year. If the service proves successful in the US, then it should be relativity easy to roll this out in the UK, we definitely know it’s on its way.

Image source: https://www.apple.com/apple-pay/

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