On its blockbuster event launching Apple Watch, iPhone 6 and iPhone 6 plus, Apple unveiled its own payment system, the Apple Pay to let user pay with credit cards right from their iPhone.
On the event Apple announced that the new iPhone 6 devices and it Smartwatch will support Apple Pay which is set to launch in US next month. The feature, using Apple’s Touch ID, will also take advantage of NFC technology. Apple Pay will allow the users to store their American Express, MasterCard, and Visa cards in the app.
Apple has over 800 million registered users, some portion of which will upgrade to the iPhone 6 devices overnight and others are expected as their contracts expire and Apple continues releasing new features to draw users in.
Apple CEO Tim Cook said “Apple Pay will forever change the way all of us buy things,” and that “We’ve created an entirely new payment process, and we called it Apple Pay.” Although Competitors like PayPal, Google already offer mobile payment solutions, some of which also use NFC technology.
Apple is partnering with many merchants that will be accepting Apple Pay; about 220,000 US merchant locations are set to use Apple Pay with its launched. It uses the Touch ID technology that requires fingerprints of the customer to pay from iPhone. It also uses Secure Element, which will securely store bank account information.
Apple Pay include one-touch checkout. It authorizes each transaction with a one-time unique number that generates a dynamic security code, replacing the security code of the credit card. Users will be able to use the iPhone’s iSight camera to take a picture of the card and add it to Passbook. Then Apple will verify the card. In addition, the “Find my iPhone” feature can now be used to suspend the payment cards.
Apple Pay will be available in the U.S. in October 2014. And work is underway to take it worldwide in the near future.