Canadian Vending

Features Payment Technology
Apple Pay service uses fingerprint ID technology


September 17, 2014
By Canadian Vending

Topics

Sept. 17, 2014, Cupertino, Calif. – Apple recently rolled out Apple Pay, a new
category of service the company says will transform mobile payments with an easy,
secure and private way to pay using a device that identifies users through fingerprint technology.

Sept. 17, 2014, Cupertino, Calif. – Apple recently rolled out Apple Pay, a new
category of service the company says will transform mobile payments with an easy,
secure and private way to pay using a device that identifies users through fingerprint technology.

Apple Pay works with iPhone 6 and iPhone
6 Plus through an NFC antenna design, a dedicated chip
called the Secure Element, and the security and convenience of Touch
ID. Apple Pay is easy to set up, so hundreds of millions of users can
simply add their credit or debit card on file from their iTunes Store®
account. Apple Pay will also work with the newly announced Apple Watch,
extending Apple Pay to over 200 million owners of iPhone 5, iPhone 5c
and iPhone 5s worldwide. 

Apple Pay supports credit and debit
cards from the three major payment networks, American Express,
MasterCard and Visa, issued by major banks including Bank of
America, Capital One Bank, Chase, Citi and Wells Fargo, representing 83
per cent of credit card purchase volume in the United States, said Apple in a news release. In addition to the
258 Apple retail stores in the U.S., major
retailers that will support Apple Pay include Bloomingdale’s, Disney
Store and Walt Disney World Resort, Duane Reade, Macy’s, McDonald’s,
Sephora, Staples, Subway, Walgreens and Whole Foods Market. Apple Watch
will also work at the over 220,000 merchant locations across the U.S. that
have contactless payment enabled.

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“Security and privacy
is at the core of Apple Pay. When you’re using Apple Pay in a store,
restaurant or other merchant, cashiers will no longer see your name,
credit card number or security code, helping to reduce the potential for
fraud,” said Eddy Cue, Apple’s senior vice-president of Internet
Software and Services, in the release. “Apple doesn’t collect your purchase history, so
we don’t know what you bought, where you bought it or how much you paid
for it. And if your iPhone is lost or stolen, you can use Find My iPhone
to quickly suspend payments from that device.”

When you add a credit or debit card with Apple
Pay, the actual card numbers are not stored on the device nor on Apple
servers, says the company. With the new system, a unique Device Account Number is assigned, encrypted
and securely stored in the Secure Element on your iPhone or Apple Watch.
Each transaction is authorized with a one-time unique number using your
Device Account Number and instead of using the security code from the
back of your card, Apple Pay creates a dynamic security code to securely
validate each transaction.

Users can pay for physical goods and
services including apparel, electronics, health and beauty products,
tickets and more with Touch ID. Checkout can happen with a single touch,
so there’s no need to manually fill out lengthy account forms or
repeatedly type in shipping and billing information, and card details
are kept private and are not shared with the online merchant. For
example, quickly order grill accessories for a backyard BBQ from the
Target app, easily request a ride with Uber without having to create an
account first or avoid the lunch line by using Rapid Pick-Up and paying
ahead in the Panera Bread app.

Starting in
October, with iPhone 6 and iPhone 6 Plus, Apple Pay will be available in
the U.S. as a free update to iOS 8. Apple Pay will work in stores with
iPhone 6, iPhone 6 Plus and Apple Watch. Apple Pay APIs will be
available to developers in iOS 8 so they can enable purchasing physical
goods within their apps on iPhone 6 and iPhone 6 Plus.