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Apple Finally Launches Apple Pay(AllAfrica Via Acquire Media NewsEdge) Apple Pay, the new mobile payment system from Apple, went live on Monday. The new mobile payments system for the iPhone 6 and 6 Plus will be up and running following the release of a software update for Apple's iOS mobile operating system. Many have the perspective that this might render physical credit cards obsolete. Apple Pay will let iPhone 6 and iPhone 6 Plus owners spend money at participating brick and mortar stores simply by using their phones' fingerprint scanner and holding the device up to the register. According to CNN, Apple Pay works by sending payment information via short-range radio waves. The message goes from a special chip inside the iPhone 6 to the register. It's called NFC, short for Near Field Communication. But NFC is only available in the newest iPhones. If one is using an old Mac, iPad or PC they can still use Apple Pay to buy stuff online. Anyone with an iPhone 5S can just tap "Pay with Apple Pay" on a participating app or website, put their finger on the fingerprint reader, and voila. For laptops, tablets and older iPhones without fingerprint sensors, clicking or tapping on "Pay with Apple Pay" still works -- it will just prompt you to enter a password. The charge goes straight to your credit or debit card -- whatever you've set up with Apple. Starting Monday, Apple Pay will be accepted at 23 online stores and roughly 220,000 store locations, including chains like Bloomingdale's, Macy's (M), McDonald's (MCD), Staples (SPLS), Subway and Whole Foods (WFM). That figure represents only about 5% of retail locations in the U.S., so it will be a while before you can feel confident leaving those credit cards at home. It also doesn't yet work with store-branded cards, corporate cards or prepaid cards. The system works with credit and debit cards from Visa (V), MasterCard (MA) and American Express (AXP) that have been issued by the following banks: Chase (JPM), Citi (C), Wells Fargo (WFC), Capital One (COF) and Bank of America (BAC). That list will expand to around 500 banks in the months to come. It's safer than a credit card. That's thanks in part to the TouchID system, which relies on your fingerprint rather than a crackable PIN number. At checkout, Apple Pay sends retailers a one-time-use, unique code -- not your credit card information. The bank verifies the code. Apple and other mobile wallet companies never get any information about your transactions. Even if hackers steal the codes, they're useless. They won't work twice. It's a major improvement over the static, easy-to-copy information on your current credit card. Copyright CIO East Africa. Distributed by AllAfrica Global Media (allAfrica.com). |