Now, with Apple Pay, consumers are ready to tap and pay anywhere contactless payments are accepted. Ignite Payments continues to drive innovation with powerful, integrated solutions so financial institutions and merchants of all sizes can bring new and exciting contactless payment options to their customers safely, securely and effortlessly.

What is Apple Pay?

Apple Pay is a mobile payment and digital wallet service by Apple Inc. that lets users make payments using the iPhone 6, iPhone 6 Plus, Apple Watch-compatible devices (iPhone 5 and later models), iPad Air 2, and iPad Mini 3. Apple Pay does not require Apple-specific contactless payment terminals and will work with Visa’s PayWave, MasterCard’s PayPass, and American Express’s ExpressPay terminals. The service has began initially only for use in the US, with international roll-out planned for the future.

Apple Pay is a mobile payment service that lets certain Apple mobile devices make payments at retail and online checkout. It intends to digitize and replace the credit or debit magnetic stripe card transaction at credit card terminals. The service lets Apple devices wirelessly communicate with point of sale systems using a near field communication (NFC) antenna, a “dedicated chip that stores encrypted payment information” (known as the Secure Element), and Apple’s Touch ID and Passbook. The service is compatible with the iPhone 6, iPhone 6 Plus, and the Apple Watch. Users with iPhone 5, 5C, or 5S can use the service through an Apple Watch, though the watch lacks the added Touch ID security. By default, Apple Pay is disabled, and the owner must enter a code to enable Apple Pay after putting on the watch. The watch’s sensors will then ensure that it is still being worn by its owner. If the watch is removed at any point, then Apple Pay is disabled again. The service keeps customer payment information private from the retailer, and creates a “dynamic security code generated for each transaction”. Apple added that they would not track usage, which would stay between the customers, the vendors, and the banks. Users can also remotely halt the service on a lost phone via the Find My iPhone service.

To check out at brick and mortar stores, users hold their authenticated Apple device to the point of sale system. iPhone users authenticate by holding their fingerprint to the phone’s Touch ID sensor, and Apple Watch users authenticate by double clicking a button on the device. There will be 220,000 participating vendors at the time of launch, including department stores Macy’s and Bloomingdales, drugstores Walgreens and Duane Reade, restaurants Subway and McDonald’s, and other retailers including Target and Whole Foods. To check out online, users choose “Apple Pay” as their payment method and authenticate with Touch ID. Groupon, Panera Bread, and Uber apps will be compatible with Apple Pay at the service’s launch. Users can add credit cards to the service through either their iTunes accounts or by taking a photo of the card. The service will only work in the United States, though Apple plans to expand to other countries.