What is it?

A new way to make payments at select retailers and online via credit and debit cards.

Who can use it?

Any user of an iPhone 6, iPhone 6 Plus or the upcoming Apple Watch.

How does it work?

Pay uses 3 features to verify the owner of the credit card being used.
1. NFC - This is a technology that allows your phone and the retailer's credit card terminal to communicate wirelessly.
2. Touch ID - The home button of the iPhone has the ability to read a fingerprint and verify that the fingerprint matches you and only you.
3. Secure Element - Think of this as a mini computer inside the iPhone
that is completely dedicated to Apple Pay only. It has absolutely no other jobs. When you add a credit card to your iPhone, a unique Device Account Number is created and stored here.

Each time you make a transaction a new security code is created. This security code and the device account number are encrypted and sent to the merchant. Think of this like speaking a foreign language to another person and that person is the only other person who can translate what you are saying.

This all means that your credit card number and information are never seen by the retailer.

Where can you use it?

At launch, Apple says there will be 220,000 retail locations available including McDonald's, Walgreens, Bloomingdale’s, Macy's, Nike, Subway, Petco, RadioShack and Chevron stations. In addition to the physical retail locations, it will be available online from retailers like the Disney store, Target, Panera Bread, Staples and Uber.

How to use?

Final thoughts

The attempts to make digital payments mainstream and accessible to all have been fast and furious over the last several years. Apple may be the company that finally has the power to make it a reality. Their combination of security and ease of use looks like a recipe for success in the payments space. For more info go to Apple Pay

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