Filip Novotny Apple has decided to enter another uncharted territory. With Apple Pay, it intends to dominate the world of financial transactions. Connecting the new Apple Pay service, iPhone 6 (a 6 iPhone Plus) and NFC technology should make paying with mobile phones at the merchant easier than ever before.
Ever since the introduction of the iPhone 5, it seemed that Apple was completely ignoring the rise of NFC technology. However, the truth was completely different – the iPhone manufacturer was developing its own unique solution, which it built into the new generation of its mobile phones and the brand new Apple Watch.
At the same time, some of the functions of these products were necessary for the introduction of Apple Pay. It was not just the inclusion of the NFC sensor, for example the Touch ID sensor or the Passbook application was also important. Thanks to these aspects, Apple's new payment method could be really simple and secure.
There are two ways to add a credit card to Apple Pay. The first of them is to get data from the iTunes account through which we purchase applications, music and so on. If you don't have a credit card with your Apple ID, just use your iPhone to take a photo of the physical card you've been carrying in your wallet. At that moment, your payment information will be entered into the Passbook application.
However, it is not necessary to start it every time you make a payment. Apple tried to simplify the whole process as much as possible, so all you have to do is place the top of the phone on the contactless terminal and put your thumb on the Touch ID sensor. The iPhone will then automatically recognize that you are trying to pay and activate the NFC sensor. The rest is similar to what you may know from contactless payment cards.
Except iPhone 6 a iPhone 6 Plus in the future it will also be possible to pay using the Apple Watch. The NFC sensor will also be present in them. However, with the wrist device, you need to be careful that there is no security with Touch ID.
Apple announced at Tuesday's presentation that American customers will initially be able to use its new payment method in 220 stores. Among them we find companies such as McDonald's, Subway, Nike, Walgreens or Toys "R" Us.
Apple Pay payments will also be able to use applications from the App Store, and we can expect updates to several well-known applications already on the first day of the service's launch. The new payment method will be supported (in the US) by, for example, Starbucks, Target, Sephora, Uber or OpenTable.
From October this year, Apple Pay will be available at five American banks (Bank of America, Capital One, Chase, Citi and Wells Fargo) and three credit card issuers (VISA, MasterCard, American Express). For now, Apple has not provided any information regarding availability in other countries.
According to official information, the Apple Pay service will not be charged in any way, both for users and for merchants or developers. The company clearly does not see this function as an opportunity for further profiting, as for example with the App Store, but rather as an add-on function for users. Simply put - Apple wants to attract new customers, but does not want to extract money from them in this way. Similar to the case of the App Store, where Apple takes 30 percent of each app purchase, the Californian company should also have Apple Pay earn a certain fee for every iPhone transaction at a merchant. However, the company itself has not yet confirmed this information, so the amount of its share of the transactions is not known. Apple also, according to Eddy Cue, will not keep records of completed transactions.
Users in the United States, in particular, could see a positive response to this feature. Surprisingly, advanced payment cards are not as common overseas as, for example, in the Czech Republic. Chip or contactless cards are far from commonplace in the US, and a large portion of Americans still use embossed, magnetic, signature cards.
Well, it looked really cool at the keynote... It made PayPal an obsolete money box :D But the question is, how will it work here in the Czech Republic... I don't see it very rosy
Well, until Apple Pay starts working here, Pay Pal will be a great service for now... and I'd say it will be quite a long time :-)
mainly that it will be possible to pay with a watch, which will expand the group of users to include the 5-series as well..
Or just wait for the iPhone 7Minus, because there won't be an applePAY drive in CR ;-)
I'm sorry to write off topic, but wasn't the new apple TV supposed to come out? I've been waiting for it for quite a long time :-D
It is easy. If Apple wants no transaction costs, then it will spread quickly, because it will be cheaper for the merchant than paying with a classic card.