Apple has formally introduced its own mobile payment system, Apple Pay. CEO Tim Cook described the “outdated and vulnerable magnetic stripe interface” on credit cards before introducing the system. A short demo was shown — twice — illustrating the ease and quickness of the payment process.
Apple Pay uses NFC, Touch ID, and the new Secure Element chip to process transactions at compatible credit card terminals in certain retailers. The system uses a one-time payment number and a dynamic security code. Payments can also be suspended using Find My iPhone if your iPhone gets lost. The system uses one-touch checkout, with no need to enter card numbers, type addresses, or share information with a retailer. Apple does not receive your purchase information when the system is used.
The system will launch with the support of American Express, MasterCard, and Visa, in addition to a number of large banks. Many large retailers will use Apple Pay at launch. It will only be compatible with the iPhone 6 and iPhone 6 Plus to start, and it’s coming in October.