First becoming available on October 20th, 2014, Apple Pay is a mobile payment or digital wallet system created by Apple Inc. which allows users to pay for purchases using their mobile devices. Apple Pay is currently supported by iPhone 6, 6 Plus, iPhone SE, iPhone 6s, 6s Plus, iPhone 7, 7 Plus, iPhone 8, 8 plus and iPhone X all iterations of the Apple Watch, iPad Mini 3, 4, iPad Air 2, iPad Pro, MacBooks, and its new Macbook Pros. At first only devices with the additional hardware NFC (Near Field Communication) a chip that allows the device to communicate with contactless terminals in a secure manner, but as Apple Pay has evolved to include web payments and app payments it has spread to many of the devices offered by Apple Inc.
Apple Pay was originally introduced at the iPhone 6 launch even held on October 20th, 2014. Apple pay was created with the aim of helping replace the much more vulnerable payment method of using magnetic stripe cards. Partnerships with American Express, MasterCard, and Visa first began in 2013, but was kept very secretive as each of the partners assigned teams to work on the secure integration of the new mobile payment technology.
ApplePay on MacOS
With the release of MacOS 10.12 or Sierra, Apple has further expanded the possibilities for ApplePay. Now the user (while using the Safari web browser) can make purchases on the web without having to enter their credit card number. The purchase is sent and validated/approved with one tap from your iPhone or Apple Watch. In their October 27th, 2016 event, Apple also revealed their new line of Macbook Pro's that will now be capable of Touch ID authentication, removing the need for an external device such as the Apple Watch or iPhone to authenticate transactions done on these newest models. This is the first time Apple is allowing the use of their technology outside of the their iOS/WatchOS duo. With this new implementation, users can expect a faster, easier, and safer way to shop online. Apple promises that the user credit card information is never shared and that they are protected with industry leading security.
ApplePay on Apps
With the popularity of ApplePay this payment technology has moved into Apps. Users are now able to pay for thing in apps simply by using the cards that they have already set up. This beneficial in many ways one of the best things about this is that by using ApplePay the users no longer need to add their Credit or debit card information in different apps reducing the number of companies that have access to ones financial information. Another unique thing about ApplePay in apps can be seen when in an Apple Inc. Store. Customers are able to go in and bi pass lines or even employees making the experience a fast and efficient experience.
Acceptance and Adaptation
Initially released to US only cards, Apple pay has slowly been growing it’s reach to banks and other financial institutions both domestically and internationally. The first big international roll out of the service occurred in July of 2015, when the service became available to UK residents. In December of 2015, it was announced that Apple would be partnering with 15 major banks in China. The service did not become available to Chinese users, however, until February 18, 2016. Apple also rolled out Apple Pay accessibility to Singapore and Canada in the second quarter of 2016 and at WWDC (World Wide Developer’s Conference) 2016, it was announced that France, Hong Kong, and Switzerland would be the next to receive Apple Pay.
At launch, there were around 220,000 locations that accepted Apple Pay. As of February 2016, that number has grown to over 2 Million. Apple Pay uses the industry standard NFC system of other contactless payment systems. Because of this, any terminal that supported contactless payments is comparable with Apple Pay negating the need for additional hardware on those existing machines. There has been some push back within the United States, however, that has slowed adoption a bit. The main opposition to Apple Pay is CurrentC, another mobile payment system from the company Merchant Customer Exchange (MCX). Exclusivity deals between CurrentC and large companies, such as Best Buy, Walmart, and Rite-Aid, has inhibited Apple Pay from being launched at those retailers. Rite-Aid’s exclusivity deal has, however, since expired and the company began rolling out Apple Pay in August of 2015. Also starting in 2017 with the launch of iOS 11 and watchOS 4, Apple will be expanding Apple Pay capabilities to include sending cash payments to contacts in the U.S over iMessage. This feature will work with a new Apple Pay Cash debit card that will hold payments, send cash, and can be used for payments in stores.
Apple Pay was enabled on 127 users by the end of 2017. Considering the 795 million iPhones in distribution, only about 16% are using Apple Pay. However, 90% of all NFC transactions globally come from Apple Pay.
Security precautions and features
Apple Pay's security features begin priory to the use of the card its start from the very moment you add an eligible card to Apple Pay. Instead of storing the users card on the cloud or on the iPhone it creates a specific code that is stored on a chip called a "secure element" and is never sent to the cloud or shared with Apple servers.
Similar to the Chip and Pin system that has recently been rolled out to American credit and debit cards, Apple Pay does not directly communicate payment information with the retailer accepting payment. Instead, a encrypted “dynamic security code" or "dynamic cryptogram" is created for each individual transaction. This cryptogram is passed to the merchant and then from the merchant to the acquirer, on to the card network, and then finally to the issuer where it is checked for authenticity. Once the issuer can verify to cryptogram, approval is sent back down the line all the way to the merchant, allowing the transaction to conclude.
Other added security features are the ability to disable the service using the Find My iPhone application if the device is lost or stolen. The system also relies on two-step authentication requiring a reading from Touch ID (finger print reader) to be used with each purchase made. To compensate for the lack of Touch ID on the Apple Watch, Apple Watch must be unlocked and within communication distance with the host phone. If the watch senses it is taken off the wrist, it automatically locks and will not allow Apple Pay functions until it is unlocked again.
iPhone X
Released in November 2017, the iPhone X also integrates Apple Pay but makes use of the integrated Face ID biometric sensor using facial recognition to identify the user. Apple reports that Face ID is even more secure than Touch ID.
Intro
First becoming available on October 20th, 2014, Apple Pay is a mobile payment or digital wallet system created by Apple Inc. which allows users to pay for purchases using their mobile devices. Apple Pay is currently supported by iPhone 6, 6 Plus, iPhone SE, iPhone 6s, 6s Plus, iPhone 7, 7 Plus, iPhone 8, 8 plus and iPhone X all iterations of the Apple Watch, iPad Mini 3, 4, iPad Air 2, iPad Pro, MacBooks, and its new Macbook Pros. At first only devices with the additional hardware NFC (Near Field Communication) a chip that allows the device to communicate with contactless terminals in a secure manner, but as Apple Pay has evolved to include web payments and app payments it has spread to many of the devices offered by Apple Inc.Apple Pay Demo
ApplePay on iOS/WatchOS
Apple Pay was originally introduced at the iPhone 6 launch even held on October 20th, 2014. Apple pay was created with the aim of helping replace the much more vulnerable payment method of using magnetic stripe cards. Partnerships with American Express, MasterCard, and Visa first began in 2013, but was kept very secretive as each of the partners assigned teams to work on the secure integration of the new mobile payment technology.ApplePay on MacOS
With the release of MacOS 10.12 or Sierra, Apple has further expanded the possibilities for ApplePay. Now the user (while using the Safari web browser) can make purchases on the web without having to enter their credit card number. The purchase is sent and validated/approved with one tap from your iPhone or Apple Watch. In their October 27th, 2016 event, Apple also revealed their new line of Macbook Pro's that will now be capable of Touch ID authentication, removing the need for an external device such as the Apple Watch or iPhone to authenticate transactions done on these newest models. This is the first time Apple is allowing the use of their technology outside of the their iOS/WatchOS duo. With this new implementation, users can expect a faster, easier, and safer way to shop online. Apple promises that the user credit card information is never shared and that they are protected with industry leading security.ApplePay on Apps
With the popularity of ApplePay this payment technology has moved into Apps. Users are now able to pay for thing in apps simply by using the cards that they have already set up. This beneficial in many ways one of the best things about this is that by using ApplePay the users no longer need to add their Credit or debit card information in different apps reducing the number of companies that have access to ones financial information. Another unique thing about ApplePay in apps can be seen when in an Apple Inc. Store. Customers are able to go in and bi pass lines or even employees making the experience a fast and efficient experience.Acceptance and Adaptation
Initially released to US only cards, Apple pay has slowly been growing it’s reach to banks and other financial institutions both domestically and internationally. The first big international roll out of the service occurred in July of 2015, when the service became available to UK residents. In December of 2015, it was announced that Apple would be partnering with 15 major banks in China. The service did not become available to Chinese users, however, until February 18, 2016. Apple also rolled out Apple Pay accessibility to Singapore and Canada in the second quarter of 2016 and at WWDC (World Wide Developer’s Conference) 2016, it was announced that France, Hong Kong, and Switzerland would be the next to receive Apple Pay.
At launch, there were around 220,000 locations that accepted Apple Pay. As of February 2016, that number has grown to over 2 Million. Apple Pay uses the industry standard NFC system of other contactless payment systems. Because of this, any terminal that supported contactless payments is comparable with Apple Pay negating the need for additional hardware on those existing machines. There has been some push back within the United States, however, that has slowed adoption a bit. The main opposition to Apple Pay is CurrentC, another mobile payment system from the company Merchant Customer Exchange (MCX). Exclusivity deals between CurrentC and large companies, such as Best Buy, Walmart, and Rite-Aid, has inhibited Apple Pay from being launched at those retailers. Rite-Aid’s exclusivity deal has, however, since expired and the company began rolling out Apple Pay in August of 2015. Also starting in 2017 with the launch of iOS 11 and watchOS 4, Apple will be expanding Apple Pay capabilities to include sending cash payments to contacts in the U.S over iMessage. This feature will work with a new Apple Pay Cash debit card that will hold payments, send cash, and can be used for payments in stores.
Apple Pay was enabled on 127 users by the end of 2017. Considering the 795 million iPhones in distribution, only about 16% are using Apple Pay. However, 90% of all NFC transactions globally come from Apple Pay.
Security precautions and features
Apple Pay's security features begin priory to the use of the card its start from the very moment you add an eligible card to Apple Pay. Instead of storing the users card on the cloud or on the iPhone it creates a specific code that is stored on a chip called a "secure element" and is never sent to the cloud or shared with Apple servers.
https://www.youtube.com/watch?v=OesaGykWOlk
Similar to the Chip and Pin system that has recently been rolled out to American credit and debit cards, Apple Pay does not directly communicate payment information with the retailer accepting payment. Instead, a encrypted “dynamic security code" or "dynamic cryptogram" is created for each individual transaction. This cryptogram is passed to the merchant and then from the merchant to the acquirer, on to the card network, and then finally to the issuer where it is checked for authenticity. Once the issuer can verify to cryptogram, approval is sent back down the line all the way to the merchant, allowing the transaction to conclude.
Other added security features are the ability to disable the service using the Find My iPhone application if the device is lost or stolen. The system also relies on two-step authentication requiring a reading from Touch ID (finger print reader) to be used with each purchase made. To compensate for the lack of Touch ID on the Apple Watch, Apple Watch must be unlocked and within communication distance with the host phone. If the watch senses it is taken off the wrist, it automatically locks and will not allow Apple Pay functions until it is unlocked again.
iPhone X
Released in November 2017, the iPhone X also integrates Apple Pay but makes use of the integrated Face ID biometric sensor using facial recognition to identify the user. Apple reports that Face ID is even more secure than Touch ID.References
http://www.apple.com/apple-pay/
https://en.wikipedia.org/wiki/Apple_Pay
http://www.macworld.com/article/2834669/ios/the-ultimate-guide-on-how-and-where-to-use-apple-pay.html
http://www.nfcworld.com/2016/10/28/348130/apple-unveils-new-macbook-pro-touch-id-integration-apple-pay-payments/
http://www.iphonehacks.com/2018/02/apple-pay-adoption-rises-16-percent-among-active-iphone-users.html