Apple pay and NFC Make Up Your New Wallet

Apple today announced Apple Pay which is its new service for mobile payments. Apple Pay works with the new iPhone 6 and iPhone 6 Plus using NFC antenna design, a dedicated chip which they call the Secure Element, and Touch ID. Apple promises account set up to be easy and one can connect it his or her iTunes account.

Apple Pay supports credit and debit cards from the three major payment networks, American Express, MasterCard and Visa. Some of the leading retailers that will support Apple Pay include Bloomingdale’s, Disney Store and Walt Disney World Resort, Duane Reade, Macy’s, McDonald’s, Sephora, Staples, Subway, Walgreens and Whole Foods Market.

How it works

When you add a credit or debit card with Apple Pay, the actual card numbers are not stored on the device nor on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your iPhone or Apple Watch. Each transaction is authorized with a one-time unique number using your Device Account Number and instead of using the security code from the back of your card, Apple Pay creates a dynamic security code to securely validate each transaction.

Source: Businesswire