Apple Pay is a NFC (near field communication) payment system which allows users to make purchases by holding their iOS device near a checkout machine in a store or by a single touch within apps. Currently, this service is available in the US, UK, Australia and Canada.

Apple Pay provides an easier and more secure payment method for customers. Users don’t need to enter card information online or slide a card and show to cashiers anymore. Devices containing a NFC chip and secure element (SE) chip are capable to process the required information during the transaction. NFC enables two electronic devices, one of which is portable and the other is terminal, to build data communication after bringing them closer. The SE chip is a tamper-resistant component that facilitates safe storage of all transactions. Sensitive information will never be shared with anyone. Each time a transaction is initiated, the SE chip generates a one-time-used code of transmitting card number. In other words, the SE is the real key to keep your financial information from being stolen.

How does Apple Pay work? The first step is adding your credit or debit card to the wallet. If you are in an actual store that accepts Apple Pay and have a device equipped with a NFC and SE chip, just hold it up to the receiver (typically a bank card terminal). While holding up your Apple device, put your finger on the home button to verify Touch ID, then the purchase will be completed shortly denoted by a vibration and a beep. As for in-app purchases, simply choose the Apple Pay option and use the Touch ID when you come to the checkout page.

Currently, Apple Pay is limited to some iOS devices. In-store purchases can only be made with iPhone 6, 6 Plus, 6s, 6s Plus because they are incorporated with a NFC and SE chip, as well as Touch ID recognition. In-app purchases are available not only through the latest two generations of iPhones, but also the iPad Air 2, iPad mini 3, iPad Pro and iPad mini 4. Paired with the Apple Watch, previous generations of iPhones such as iPhone 5c and 5s also work once they are set up.

Apple Pay is dramatically changing payment methods. Within one year alone, it has taken up 1% of mobile payment volume. According to recent release, every Apple Pay user authorizes a purchase by placing their finger on the Touch ID button twice a week. Apple Pay is now seeking global expansion so more people will be able to enjoy this service in the near future. Meanwhile, this one-tap purchase technology is supposed to be perfected.

References:

http://www.apple.com/apple-pay/

Image courtesy of appleinsider.com

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