Apple was being rumored to come up with its own payment system for quite a long while now, and today is that moment when we witness the launch of this service. Thus, Apple will enter the mobile payment space with this month’s launch of the iPhone 6 and iPhone 6 Plus, both of which will ship with integrated near-field communications technology for secure wireless payments.
Apple Chief Executive Tim Cook said that current credit cards are not secure, as they expose numbers and “outdated and vulnerable” magnetic stripes. Thus, with Apple Pay, the company looks to solve this by securely holding banking and card information on a user’s iPhone 6 or iPhone 6 Plus.
For this new service, Apple has partnered with American Express, MasterCard and Visa for digital debit cards and credit cards. Also, the six biggest issuing banks in the U.S. are also going to partner with Apple, which represents 83 percent of the credit card volume in the U.S.
Thus, Apple’s new payment system will work with 220,000 locations that allow contact-less payments. The method is being touted as being more secure than traditional payment solutions because cashiers don’t get to see a customer’s name, credit card number or security code.
When it comes to online purchases, Apple Pay will enable one-touch checkout without having to enter your card number or address. Target, Uber and Groupon are said to include Apple Pay in their iOS apps, as well, and the OpenTable app will let you pay your check with Apple Pay. Also, an Apple Pay API for iOS 8 will allow more developers tap into the service.
Oh, and by the way, this new service will work the just announced Apple Watch – how cool is that, right? Apple Pay is set to launch in the U.S. in October, and Apple plans to roll out in more countries soon.