“The introduction of Apple Pay – and the coming of its rival, CurrentC – has retail CIOs looking, again, at how customers pay,” Jen A. Miller reports for CIO. “Apple pushes Pay as one way to stop security breaches. That’s because a retailer doesn’t store credit card information. Instead, Apple stores that data, and gives retailers a ‘token’ that stands in for payment.”
“‘The credit card isn’t transmitted during the transaction, and the retailer will not have the credit card number in [its] systems,’ says Jim Maholic, author of Business Cases that Mean Business and vice president in Hitachi Consulting. That way, even if the retailer is hacked, the customer’s information isn’t put at risk. ‘As a CIO, I [would] feel better if I have more customers using Apple Pay, because I haven’t exposed their numbers to risk,'” Miller reports. “‘There’s a certain number of affluent customers who use the iPhone 6 [and iPhone 6 Plus],’ says Maholic. If one store offers Apple Pay and the other doesn’t, those well-heeled customers are more likely to walk in the Apple Pay door. ‘Now that I’ve got that customer, it’s harder for somebody to steal that customer.'”
Read more in the full article here.
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