Apple Pay is a mobile payment and digital wallet service by Apple Inc. that lets users make payments using the iPhone 6, 6 Plus, 6S and 6S Plus, Apple Watch-compatible devices (iPhone 5 and later models), iPad Air 2, iPad Pro and iPad Mini 3 and 4. Apple Pay does not require Apple-specific contactless payment terminals and will work with Visa's PayWave, MasterCard's PayPass, and American Express's ExpressPay terminals.
Service
Apple Pay lets mobile devices make payments at contactless points of sale and in iOS apps. It digitizes and replaces the credit or debit card chip and PIN or magnetic stripe transaction at point-of-sale terminals. It is similar to contactless payments already used in many countries, with the addition of two-factor authentication. The service lets Apple devices wirelessly communicate with point of sale systems using a near field communication (NFC) antenna, a "dedicated chip that stores encrypted payment information" (known as the Secure Element), and Apple's Touch ID and Wallet. The service is compatible with the iPhone 6, 6 Plus, 6S and 6S Plus and the Apple Watch. Users with iPhone 5, 5C, 5S, 6, 6 Plus, 6S and 6S Plus can use the service through an Apple Watch, though it lacks Touch ID security. Instead, Apple Pay is activated with a passcode and will remain active for as long as the user wears the Apple Watch.
The service keeps customer payment information private from the retailer, and creates a "dynamic security code [...] generated for each transaction". Apple added that they would not track usage, which would stay between the customers, the vendors, and the banks. Users can also remotely halt the service on a lost phone via the Find My iPhone service.
To pay at points of sale, users hold their authenticated Apple device to the point of sale system. iPhone users authenticate by holding their fingerprint to the phone's Touch ID sensor, whereas Apple Watch users authenticate by double clicking a button on the device. To pay in supported iOS apps, users choose Apple Pay as their payment method and authenticate with Touch ID. Users can add payment cards to the service in any of three ways: through their iTunes accounts, by taking a photo of the card, or by entering the card information manually.
In the United Kingdom, payments using contactless cards are limited to £30 (previously £20 until August 2015) as they have only one-factor authentication. Although payments using Apple Pay have two-factor authentication and no transaction limit, they are in practice subject to the previous £20 transaction limit until retailers upgrade the software in their terminals to support the latest network contactless specifications.
Apple assumes some liability for fraudulent use of the service. Banks are expected to carry the burden of the service, and Apple is said to have negotiated smaller transaction fees. In turn, the banks hoped to capture purchases that were formerly handled without credit. Financial Times reported that Apple receives 0.15% cut of US purchases made with the service, but, following the UK launch, reported that Apple's cut is much lower in the UK. This is largely because Regulation (EU) 2015/751 capped interchange fees in the European Economic Area at 0.3% for personal credit cards and 0.2% for personal debit cards with effect from June 8, 2015.
Credit Cards On Iphone Video
History
The service was announced at Apple's iPhone 6 event on September 9, 2014. At its announcement, Apple CEO Tim Cook described the magnetic stripe card payment process as broken for its reliance on plastic cards "outdated and vulnerable magnetic interface", "exposed numbers", and insecure "security codes". The iOS 8.1 software update accompanying the service's launch activated Apple Pay on compatible devices. The company announced an API for app developers to build Apple Pay checkout into their apps.
The service was in preparation for "a long time", as Apple acquired startups, hired executives and filed patents related to payments. Apple partnered with American Express, Mastercard and Visa. Their joint project began in January 2013, though they had discussed Apple's potential involvement for years. Their joint solution was a system where single-use digital tokens would replace the transfer of personal information. A Visa executive said that 750 people at the company worked on the anonymized "token" system for a year, and the other partners had similar teams in collaboration. MasterCard began work on the project in 2013 and hoped that their joint work would become a "standard for mobile payments". The announcement of the service came at a time when MasterCard and Visa policy created strong incentives for upgrading to mobile payment-compatible point of sale systems. Apple then approached several big banks in mid 2013 and did not divulge the names of the other banks. JPMorgan made a windowless "war room" for the sensitive details. Of their 300 people on the project, about 100 knew that the partner was Apple. Others close to the project did not know it was named "Apple Pay" until the announcement. The company's participation remained a secret leading up to its announcement.
The service initially supported US-issued payments cards. An international roll-out is ongoing, beginning with support for UK-issued payment cards in July 2015. Apple is expected to expand to China and Canada and was reported to be in negotiations with local banks.
Reception
Reviews
Journalists noted the multiple previously unsuccessful efforts of other retailers to build mobile payments services, including those of PayPal, Wal-Mart, Target, Google Wallet, and Softcard. They noted that previous efforts did not solve customer inconvenience issues, and felt that Apple Pay potentially did. The Verge?? '?s Adrianne Jeffries noted that mobile payment market fragmentation was partially due to Apple's refusal to enter the market. Businessweek?? '?s Joshua Brustein added that Apple has a history of letting "first movers fail" with an early version of the service before releasing "a more polished version of the same idea". The Verge?? '?s Dieter Bohn called Apple Pay the "week's most revolutionary product" and the announcement "a classic Apple moment of simplification and integration", and the partnership between payments services and Apple "a rare piece of collaboration and agreement". He predicted that the service's effect on the mobile payments industry would be similar to the iPhone's effect on the smartphone industry. Nathaniel Popper of The New York Times referred to the banks' level of coordination with Apple as "elaborate" and indicative of mutual "preparation and investment". Some analysts added that the service could reduce the standard credit card transaction fees over time, since fees traditionally cover credit card fraud. The banks were willing to work with Apple in the face of efforts like Bitcoin and the Merchant Customer Exchange, which seeks to work around the card networks.
Early reviews of the service regarded it as easy to use, but were not sure whether the service would become widely adopted. The Verge?? '?s Nilay Patel wrote that the product demo was "remarkably smooth" and "a cohesive user experience". Patel said the process took five to ten seconds at a retail card reader, and added that it may be less smooth at stores such as Walgreens, where cashiers prompt customers for loyalty cards and charity donations. The New York Times?? '?s Neil Irwin wrote that Apple exaggerated the inconvenience of credit cards. Among the plastic card's benefits, he included how others could make purchases on another's behalf and how dead cell phones could leave the owner stranded.
Adoption
Apple announced that more than 1 million credit cards had been registered on Apple Pay in the first 3 days of its availability, making it the largest mobile payment system at the time. There were 220,000 participating vendors when it launched. Outside the United States and the United Kingdom, Apple Pay can be used with American and British payment cards at compatible NFC-based payment terminals.
In the United States, Apple faced opposition by the mobile payments industry, particularly the Merchant Customer Exchange (MCX) which is trialling a competing system known as CurrentC. Several participants of CurrentC, such as Best Buy and Walmart, have initially stated that they would not accept Apple Pay as a result of exclusivity deals. CVS Pharmacy and Rite-Aid subsequently disabled all NFC payment systems in favour of CurrentC, although the latter is due to accept Apple Pay with the exclusivity period ending in August 2015. Best Buy and Target announced that they would start accepting Apple Pay eventually, but remain involved with MCX.
Transport for London, one of Apple Pay's official UK launch partners and one of the largest contactless merchants in the world, became the UK's most used Apple Pay merchant.
Apple has an incomplete list of merchants who accept Apple Pay on its website.
Are You Looking for Products
Here some products related to "Apple Pay".
FreshFiber Mondriaan Case..
Luxury Wallet Blue PU Lea..
FreshFiber Mondriaan Case..
OtterBox COMMUTER WALLET ..
Get these at Amazon.com* amzn.to is official short URL for Amazon.com, provided by Bitly
Source of the article : here
EmoticonEmoticon