Apple is introducing a new initiative to replace the wallet, Apple Pay. You hold your iPhone 6 to a sensor, use Touch ID to authenticate and done. The transaction is complete. The system works using NFC at supporting locations — NFC is built into every iPhone 6 and iPhone 6 Plus.
The iPhone 6 NFC sensor strip is at the top of the phone. Credit cards appear in your Passbook. They are secured using a secure enclave in the phone. The credit card number itself is never stored. A security code is sent over the wire, meaning the card number is completely separate to the transaction.
The iPhone 6 NFC sensor strip is at the top of the phone. Credit cards appear in your Passbook. They are secured using a secure enclave in the phone. The credit card number itself is never stored. A security code is sent over the wire, meaning the card number is completely separate to the transaction.
This means that you don’t have to cancel your card if your phone is lost and Apple never sees nor records your transactions. Find My iPhone can disable all payments, if a phone is lost for additional piece of mind. Apple Pay works with Amex, Mastercard and Visa in the US at over 220,000 locations. This includes Subway, Staples, McDonalds, Walgreens, Disney and Whole Foods.
Apple Pay works with the top bank issuers that handle 83% of the credit card purchase volume.
The system also works online. It brings NFC one tap experience to online shopping — no credit cards or long forms. Tap and pay and it — supposedly — just works. There is also some third-party app integration, such as with OpenTable, Groupon and Target.
There is an Apple Pay API so more third-party developers can integrate in future. The system launches in October, alongside an upcoming iOS 8 update.
Apple Pay will also work with the Apple Watch, although specific details (like Touch ID integration) are currently unclear.
Copyright 2014 http://9to5mac.com/2014/09/09/apple-announces-replacement-for-the-wallet-introduces-apple-pay/
