Apple Pay A New Way To Send and Receive Payments
Some experts are now saying that Apple will be the death of the credit card. September 9th is the supposed date of the beginning of the end for the Credit card. On the 9th of September, Apple announced a line of new products, service and important updates to their products, including its new iWatch which is a new more durable iPhone, and a new OS and Mac Hardware.
But the big news, which has wide ranging impacts on consumers and business owners is that Apple is now fully supporting NFC or near Field Communications for mobile payments. While NFC has been around for years, it lacked support other than Google, who has been the only major backer of this new technology. NFC works by allowing two mobile devices to transmit and receive encrypted data via radio waves. iPhone and apple have for years resisted going with NFC, but this has changed, and its impact on global economy will be far reaching.
Apple’s new mobile payment service will work with all the major credit card companies, such as Discover, Visa, Mastercard, and American Express. According to insiders in the know, Apple is already sending out iBeacon transmitters and NFC technology to its retail stores throughout the United states. Apple is already hard at work partnering with a large number of retailers nationwide to support the new technology, including Walgreens, CVS and more. The mobile payment market is expected to be huge, with one estimate that the market will reach $1 trillion by 2017. The Apple and Google partnership will not be the only game in town when it comes to NFC technology, as Paypal, Facebook and even Twitter may expand into NFC backed technologies.
New technologies and innovations are expected to follow. Software developers, entrepreneurs and start ups may create new software and sensors to change the way we use mobile devices, how the devices talk to one another, and new levels of security. At some point we will no longer need wallets, drivers licenses, store cards, debit cards or any type of cards, they will all be stored on our mobile devices. Regular every day average people will be able to take electronic payments on the go. Carrying cash may go to the wayside one day. All starting with this new payment method.
The new service is called Apple Pay, which is available on the new iPhone 6 and the iPhone 6 Plus. According to Tim Cook “Apple pay will forever change the way all of us buy things … it’s what makes the iPhone 6 the biggest advancement in the history of iPhones,” With a single tap and touching your phone to a scanner, the TouchID will complete the purchase for you. The entire process takes 2 to 3 seconds. Apple stores your cards with very strong encryption that cannot be broken currently, storing all of your cards inside Passbook. Every card gets a unique device only account number, your actual card number is not stored or nor shared. You can scan a card or use iTunes stored cards to add to your mobile device. Never before has using a credit card been so secure as with this new system. Apple’s Eddy Cue says “Apple Pay uses device-only account numbers. We use a one-time payment number along with a dynamic security code.” If your mobile device gets stolen you do not need to cancel your cards, as the information is not stored on the device, but rather the device only account number.
Acceptance of the new technology is widespread, at the time of this writing over 200,000 U.S retailers and merchants have signed up with Apple Pay, and so have six major banks, with more to come in the coming months. Online aps and stores will feature an Apple Pay button, much like the old PayPal button, and check outs will be possible with but a quick tap. Apple Pay is expected to debut in October, and it will be rolled out in an iOS 8 update. Unlike chip technology which started out in Europe, this technology is rolling out first in the United States, then world wide to follow. Apple Pay will also be made to work with the Apple Watch.