Apple today announced Apple Pay, its long-awaited mobile payment system. The technology relies on a mix of Passbook, Touch ID, and new NFC and “Secure Element” hardware in the iPhone 6 and 6 Plus. Users can add credit cards from their iTunes account, or take a photo of one and verify it with the bank. A credit card number isn’t stored on a phone or shared, and transactions are tokenized, as was rumored. Should a phone be stolen, Find My iPhone can be used to disable purchasing functions, eliminating the need to cancel cards. Cashiers don’t see any of the transaction data.
The platform is being supported by the six biggest banks, and covers cards like Visa, Mastercard, and American Express. A number of retail partners have been announced, including Macy’s, Sephora, Walgreens, Whole Foods, McDonald’s, Disney, Staples, Subway, and more. Apple Pay will also work online in apps such as Uber, Panera, Groupon, and Target, and at Apple’s own retail chain.
Apple Pay is due to go live sometime in October. The platform will be supported in some manner with the Apple Watch, which also sports NFC.
