Menu
Apple enters the mobile payments business

Apple enters the mobile payments business

Apple Pay is built into the iPhone 6 and will also be available through an iOS 8 update

Apple is getting into the mobile payments business with the launch of Apple Pay in the U.S. next month.

"We've placed a lot of energy into creating an entirely new payments solution," said CEO Tim Cook at the company's annual September product launch in Cupertino, California, Tuesday.

The service is built into both versions of the iPhone 6, which have an NFC (near-field communication) antenna, and Apple Pay will also be offered to those with earlier iPhone versions via an iOS 8 update.

Security for the service will be through the phones' Touch ID.

The service can be activated using credit card information stored in iTunes accounts. New cards can be added to the service by taking a picture of them through the iSight camera on an iPhone. When users add credit cards to Passbook, the numbers are not stored or shared on the device or Apple servers and neither is any information about a transaction.

The service applies a one-time, unique number to authorize each transaction.

"We have security integrated throughout both hardware and software in a way only Apple can," said Eddy Cue, Apple senior vice president of Internet Software and Services.

Apple Pay will be more secure than carrying around a wallet with credit cards in it, because the Find My iPhone service can be used to suspend service on lost or stolen devices, Apple said.

Mastercard, Visa and American Express are all on board for Apple Pay, as are banks accounting for 83 percent of credit-card purchase volume, the company said. Merchants including Sephora, Starbucks, Panera, Groupon, Staples and MLB.com have signed up to accept payments through Apple Pay by the end of the year, with more expected to come on board.

After the U.S. launch next month, Apple plans to offer the service in additional countries, but did not specify which ones or when.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags retailAppleconsumer electronicsindustry verticals

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments