Apple’s ambition is to replace the wallet. It’s launching Apple Pay in order to do so.
We spend $12 billion a year on credit cards, with 200 million daily credit card transactions in what Tim Cook called a “huge business”. Yet, credit and debit cards outdated and vulnerable, according to Cook.
To use Apple Pay, you can simply tap your iPhone on the receptacle — “it’s so cool,” exclaims Tim Cook. the video demo demonstrated a woman paying by holding Touch ID and tapping her phone.
Built on NFC technology, Touch ID and a new ‘Secure Element’ — coupled with the Passbook app — Apple Pay can use your card on your iTunes account or one added using the iPhone camera.
Starting in the US, cards from American Express, Visa and MasterCard are supported. There are also a bunch of retail partners, online and in physical retail stores:
Launching next month in the US with international roll-outs coming “soon”.
Security was emphasized. Eddy Cue said that a lost iPhone does not mean lost credit card information. With iCloud’s Find My iPhone tool, the owner can wipe the encrypted data from the phone remotely, meaning cards need not be cancelled.
Further, retailers will not know what you bought or where you bought it and that a “cashier doesn’t see your name or security code as they do today”.
So, the question remains… will you use Apple Pay? Let us know your thoughts in the comments!
Read more about Apple Pay in the company’s official press release HERE.