Apple Pay – Digital Contactless Payments

Apple Pay

Apple Pay is a digital wallet service from Apple that allows users to pay for purchases with most newer Apple devices at any terminal that is equipped to accept contactless payments. Purchases using Apple Pay can be made in person, on the web, or in any iOS app. Apple Pay can be used in place of any credit or debit card with magnetic stripes or chip and PIN technology. Apple Pay works in much the same way as other types of contactless payments in many countries, but Apple Pay adds two-factor authentication through PIN, passcode, Touch ID or Facial recognition.

With Apple Pay, devices use near field communication to send data wirelessly to point of sale systems with the Secure Element, a dedicated chip used to store encrypted information. Apple Pay uses EMV Tokenization, which keeps customer information private by replacing the customer’s account number with a dynamic security code which is unique for each transaction.

Users pay for purchases by holding their device near the point of sale terminal. Authorization depends on the device being used. In most cases, the user places their finger on the Touch ID sensor. In the case of Apple Watch, the user double clicks a button on the device. Payment cards can be added to the account through iTunes, by entering the card information, or by taking a photo of the card.

In the UK, two-factor authentication is not available, so Apple Pay purchases are currently limited to £30 in most cases, though there are some exceptions. Apple Pay is not standard for merchant accounts so you may need to ask for it to be part of your merchant service solution.