Apple announces Apple Pay mobile payments

Apple today announced Apple Pay, a new category of service that will transform mobile payments with an easy, secure and private way to pay. Apple Pay works with iPhone 6 and iPhone 6 Plus through a groundbreaking NFC antenna design, a dedicated chip called the Secure Element, and the security and convenience of Touch ID. Apple Pay is easy to set up, so hundreds of millions of users can simply add their credit or debit card on file from their iTunes Store account. Apple Pay will also work with the newly announced Apple Watch, extending Apple Pay to over 200 million owners of iPhone 5, iPhone 5c and iPhone 5s worldwide.

Apple Pay supports credit and debit cards from the three major payment networks, American Express, MasterCard and Visa, issued by the most popular banks including Bank of America, Capital One Bank, Chase, Citi and Wells Fargo, representing 83 percent of credit card purchase volume in the US.* In addition to the 258 Apple retail stores in the US, some of the nation’s leading retailers that will support Apple Pay include Bloomingdale’s, Disney Store and Walt Disney World Resort, Duane Reade, Macy’s, McDonald’s, Sephora, Staples, Subway, Walgreens and Whole Foods Market. Apple Watch will also work at the over 220,000 merchant locations across the US that have contactless payment enabled. Apple Pay is also able to make purchases through apps in the App Store.

Apple Pay on iPhone 6
Apple Pay on iPhone 6
“Security and privacy is at the core of Apple Pay. When you’re using Apple Pay in a store, restaurant or other merchant, cashiers will no longer see your name, credit card number or security code, helping to reduce the potential for fraud,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services, in a statement. “Apple doesn’t collect your purchase history, so we don’t know what you bought, where you bought it or how much you paid for it. And if your iPhone is lost or stolen, you can use Find My iPhone to quickly suspend payments from that device.”

Apple Pay will change the way you pay. When you add a credit or debit card with Apple Pay, the actual card numbers are not stored on the device nor on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your iPhone or Apple Watch. Each transaction is authorized with a one-time unique number using your Device Account Number and instead of using the security code from the back of your card, Apple Pay creates a dynamic security code to securely validate each transaction.

“JPMorgan Chase has been pleased to collaborate on Apple Pay to create a better, faster and safer payments system, which puts the customer first, creating an exceptional customer experience for consumers and merchants. Everyone wins,” said Jamie Dimon, chairman and CEO, JPMorgan Chase & Co.

“We’re providing our customers with tools to make their financial lives better, including our 30 million digital banking customers,” said Brian Moynihan, CEO of Bank of America. “For them, better means simple and convenient. Apple Pay is another exciting move in that direction.”

“Apple Pay is the kind of innovative thinking that brings the worlds of online and offline commerce closer together,” said Ken Chenault, CEO of American Express. “We’re excited to work with Apple to offer Card Members and merchants a simple and secure way to make purchases in stores and on apps.”

Online shopping in apps with iPhone is also as simple as the touch of a finger. Users can pay for physical goods and services including apparel, electronics, health and beauty products, tickets and more with Touch ID. Checkout can happen with a single touch, so there’s no need to manually fill out lengthy account forms or repeatedly type in shipping and billing information, and card details are kept private and are not shared with the online merchant. For example, quickly order grill accessories for a backyard BBQ from the Target app, easily request a ride with Uber without having to create an account first or avoid the lunch line by using Rapid Pick-Up and paying ahead in the Panera Bread app. Simply make your selection and when ready to buy, use Apple Pay to complete the transaction.

Starting in October, with iPhone 6 and iPhone 6 Plus, Apple Pay will be available in the US as a free update to iOS 8. Apple Pay will work in stores with iPhone 6, iPhone 6 Plus and Apple Watch. Apple Pay APIs will be available to developers in iOS 8 so they can enable purchasing physical goods within their apps on iPhone 6 and iPhone 6 Plus.

*American Express, Bank of America, Capital One Bank, Chase, Citi and Wells Fargo at availability with additional banks coming quickly thereafter including Barclaycard, Navy Federal Credit Union, PNC Bank, USAA and U.S. Bank.

Source: Apple Inc.


    1. I would love to see ApplePAY included in Yosemite. Hopefully we won’t have to allow websites to store our credit card info for much longer!! If this does become a possibility, I will request new cards and numbers from my credit card companies, just to make the stored data at Amazon, etc. useless.

  1. It seems as if almost every rumor was true. Amazing. Nothing can be kept secret at Apple anymore, and that is a shame, Awesome products though…..I knew Apple would do this watch right, especially with the charging issue. Way to go.

        1. Difficult to judge that omission for a product that has no release date but is at leaf 4 months away. I suspect that is something still being worked on both in the battery itself and how that power is used in the watch so precise details would be difficult to claim especially as you would have to under claim just in case. I think we all know that battery life is going to be less than most will find ideal so they need to be accurate on any claimed figures and the fact that there were no fully working examples shows that aspects are yet to be complete or perhaps even finalised.

    1. The biggest and thankfully rewarding difference was the front of the iPhones which look much better and different to previously than the leaks suggested. Looks much more of a complete singular design now rather than a flat front stuck on to a case which always felt wrong for a premium product.

  2. Thanks, Tim for making me the most accurate predictor around these parts for the past couple of weeks. And, thanks for asking your employees to stand at the end – 80% of the audience. Now we know that the whooping and hollering is coming from people paid to whoop and holler. In the meantime, tweaking the iOS, making the phone screen bigger, and producing a clunky wrist device has Wall Street in a frenzy. We holders of AAPL are really, really thrilled.

    1. The new phones look just fine. Certainly overdue as far as a larger size. I’m afraid I’m with you on the watch, I just don’t find it very attractive. But it certainly does do a lot of things so I think it will succeed. But what a terrible presentation. There just was no excitement in any of the presenters. You don’t have to be Steve Jobs, you just need to have stage presence and a dynamic personality. It’s the presentation. You’re not an engineer. You’re presenting the product to the public and the press. Craig seems to do a fairly decent job. But he was a no-show. I just can’t believe that they can’t do a better job at presenting their products every year. That has a little bit to do with the success or failure of AAPL. Down, after all that. That’s inexcusable.

      1. Yeah, they do Sean. Just look at the votes I attract. Especially when people hate it that I’ve nailed it like I did today. Tweaks and ordinary updates to stuff or even making a prettier (debatable) wrist gadget are not the things of innovation. Just take a look at the response from so many disappointed Apple followers and especially the reaction on Wall Street.

        1. The “reaction” from Wall Street is usually negative no matter what the hell Apple does or announces. Your just a dick Jay, an insignificant little dick who’s life revolves around it’s own asshole. Sucks to be you.

        2. At the great risk of feeding a troll, I’ll respond.

          Let us look at the Wall Street today: AAPL opened around $99. It took a dip around the time of the beginning of the show. It then surget to $102.60 around 2pm (when Apple Watch was announced), and then settled back to around $98, when it was clear that Apple Watch won’t be there for Christmas. The day finished with a negligible loss of 0.3% (less than the indices).

          So, most of the announcements were more-or-less already baked into the stock, except for the watch. Had the watch been ready for retail right away (or in time for Christmas), AAPL would have likely stayed around $102 (or gone further). IN other words, Wall Street loved the watch, but was disappointed about the wait.

          Trolls tend to attract votes here, because it is extremely easy to click ‘1 star’. Not to mention that the definition of trolling is to bring up anger, which compels people to react.

          1. So anyone that has an opinion that’s different than yours is a troll? Hmmmm. And AAPL hit $103.08 today. That’s when Apple Pay was announced. That was the highlight as far as the stock price. And by the way, Wall Street doesn’t owe Apple or any other corporation favors. Wall Street isn’t there to help Apple go higher or lower. It is what it is. Most stocks were down today. It was a down day on Wall Street. Were they all picked on? If AAPL deserves to be up going forward then it will be up. Everything that was announced today was already baked into the price of the stock. The fact that the watch won’t be released until sometime in 2015 is hardly the fault of Wall Street. Obviously it takes a lot to move the stock for a company the size of Apple. The fourth quarter will end at the end of this month. Perhaps earnings call sometime in October will be a catalyst for the stock to move upwards? But presently there is little to move the stock price. It has gone up appreciably the last few months.

            1. No, Max, I never said everyone with an opinion different than mine was a troll. I only said Jay Morisson was a troll. Most regulars on this post can confirm this, as he has been trolling this site for quite some time. Granted, his most recent post above doesn’t look that much as trolling, but if you look at his previous submissions (and there are quite a few), you’d easily understand why he’s been labeled as troll (by many others, well before I did it above).

              As for the substance, we seem to agree. It was a down day for stocks, and AAPL didn’t do much better than the rest of the market, so as both you and I said, the announcement was already baked into the price. The point remains that, contrary to the troll Jay’s sarcastic implying otherwise, there was no broad disappointment over the announcement to send AAPL into a dive.

  3. The pay service is the most significant of the announcements today. This has the possibility to significantly reduce and in some cases eliminate credit card fraud. Every bank, payment network, and customer should be on this service to substantially reduce their risk.

    I work in fraud, and I can’t believe Wall Street and everyone in general is not flipping out in joy over the benefits that this delivers.

  4. And one month from now, Microsoft introduces You Pay®™©, which works on Zunes and Windows Phone, and is supported by Komercni banka of the Czech Republic and other financial institutions.

    1. I’ll be waiting for GooPay (or AndroPay?), which will be touting all the features that ApplePay lacks: Google *will* collect your name, what you bought, how much you paid…

  5. It’s not going to be as big a thing as it should be until places like Walmart and then little local stores get on board. Then and only then, will it do what it’s supposed to do – make paying secure and and quick.

  6. I can see the Watch proving very popular with commuters living in cities with public transit systems using NFC travel cards.
    Pretty much everyone carries them in their wallets, or in a card wallet along with bank cards, many of which are using similar Touch-and-Go tech.
    The problem there is that the cards tend to interfere with each other; there are notices on the London Underground now warning travellers to carry their Oyster Card separate from their bank cards.
    TfL already has an app for making amendments to an Oyster Card account, it surely wouldn’t take much for that to be linked to an Apple account, allowing the use of iPhones or Watches to travel on the Tube, or buses or overground rail.
    Other cities are using and introducing these systems, Apple could well be in right at the beginning of really significant changes to the way people pay for goods and travel.
    Chip-and-pin security on cards is already being subverted, as a way of bypassing that area of card fraud, Apple are on to a winner.

    1. TfL will undoubtedly use this, its just a matter of how far into the future I guess. The massive infrastructure and ticketing investments being made will probably dictate in terms of the cost involved and the ability of the technology to adapt to it. The number of usable iPhones will have to grow quickly before they jump aboard i suspect. Other similar organisations with think similarly I would say but if it encourages similar and compatible (in terms of tech) systems on other phones then no doubt it will be rather quicker.

      1. Yes but if the receiving technology is the same as most likely it will be for others then it will promote its use and others will have to try to match Apples security aspects in their own right. That could be tricky in the short term especially is each Google partner starts to go their own way. I suspect Google will try to use this as a strong shot of alcohol to its own efforts to push the concept. But with so many different hardware providers that could be tricky as we see generally with Android security.

  7. Also, they have ruled the market due to their anatomical constructions of shoes thatmake the shoes anti-stress with special shock absorption system.Thread and stitching – thread used in stitching is always the same asthe colour of the leather. Right from the beginning the company had earned greatreputation thanks to the quality of its shoes.

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