Apple Pay: An in-depth look the world’s most secure payment system

“With Apple Pay slated to go live later this month, one can soon expect to see an avalanche of fear mongering from pundits who, like PayPal, will question the wisdom of trusting Apple with user credit card information,” Yoni Heisler reports for TUAW.

“The reality, though, is that Apple Pay is an exceedingly secure mobile payment platform. In fact, it may very well be the safest way to make any type of credit card payment,” Heisler reports. “With Apple Pay, no credit card data — even in encrypted form — is ever stored on the iPhone or on Apple’s servers. Similarly, no credit card data is ever transmitted to or stored on a merchant’s servers.”

Heisler reports, “Highlighting the improved safety that Apple Pay provides, Tom Noyes — a former credit card executive who has an excellent series of in-depth posts about the world of mobile payments — said the following in the wake of Apple’s Apple Pay announcement: Apple is the first implementation of the new EMVCo tokenization specification. In my view this is a giant LEAP beyond EMV chip and PIN, and is now (by far) the most secure PAYMENTS scheme on the planet.”

Tons more in the full article here.

MacDailyNews Take: As we wrote on September 10, 2014:

The market has yet to fully grasp the magnitude of Apple Pay.

[Thanks to MacDailyNews Reader “Zack” for the heads up.]

Related articles:
With Apple Pay launch, mobile payments have finally arrived – October 2, 2014
The kids aren’t into PayPal as Apple Pay rules mobile-pay buzz – October 2, 2014
Bitten by Apple Pay, eBay gets 3 downgrades – October 1, 2014
Apple Pay arriving with iOS 8.1 this month, sources say – October 1, 2014
iOS 8.1 beta shows Apple Pay to work with Siri – October 1, 2014
Apple Pay: A semi-monopoly on the real killer app – October 1, 2014
Apple Pay casts shadow on PayPal Spinoff – October 1, 2014
How PayPal blew their chance to be an Apple Pay preferred partner – September 30, 2014
As Apple Pay rolls out, eBay plans to spin off PayPal business – September 30, 2014
The rush is on worldwide to support Apple’s revolutionary Apple Pay – September 19, 2014
Apple Pay set to radically change commerce – September 18, 2014
Banks race to gain Apple Pay advantage – September 16, 2014
Apple Pay triggers pure panic at PayPal, begets ‘dumbest ad campaign ever’ – September 16, 2014
Frightened PayPal slams Apple Pay in full-page newspaper ads – September 15, 2014


    1. They did important work in paving the way to mobile payments, but now they have been disrupted out of relevance, if not this year then soon. When Apple Pay expands to accept and send payments for users, then PayPal & Square and half dozen others will look woefully inadequate in comparison.

  1. As far as PayPal, I think they know it’s gonna be bad, but not just how bad.

    “The market” is really clueless. It hasn’t even begun to think about how this is going to change things.

  2. have always been the leader in security and encryption,” he told CNNMoney this week. “Our systems are far more secure and encrypted than anyone else, including Apple. They’re catching up, which is great.”

    Eric T. Mole Schmidt – today’s news…

  3. Someone should do an in-depth look at googles massive failure with its wallet payment system. That story needs dragging out in excruciating detail as a valuable study lesson in corporate incompetence and greed.

  4. I absolutely enjoy Apple announcements, where even after the public announcement, comprehending impact is virtually ignored.

    This like stunning the fish, before gobbling them up. Since Apple has no vested interest in adverts or finances, they are the best impartial implimentor of a new payment system.

    Others can’t see the forest before the trees.

    Sit back and enjoy the ride.

  5. “Apple is the first implementation of the new EMVCo tokenization specification”

    Thing is since the specification is not specific to Apple there is no significant barrier to other vendors producing a similar system in short order. Reading the article (specifically “The mechanics of an Apple Pay transaction”) it seems that the only real Apple specific portion of the system is Touch ID. Everything else is a standardized system that anyone can use for their own payment system. Kudos for Apple and the other financial institutions for working on it together for the benefit of all future electronic payment.

      1. Not that I am aware of. However something similar may be implemented in the future. In any case it is irrelevant to the rest of the system processing the electronic payment since the system basically is seeing only a token and cryptogram pair from the NFC reader at the retailers and doesn’t care at that point what device is providing them.

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