Apple Pay is a mobile payments service and digital wallet by Apple Inc. which allows users to make payments directly, in iOS apps, and on the web. It's supported on iPhone, Apple Watch, iPad and Mac. It digitizes and can replace credit or debit cards and PIN or magnetic stripe transactions at a contactless-capable point-of-sale terminal. Apple Pay does not require an Apple Pay special touch payment terminal; it works with any merchant who accepts payments without contact. This is very similar to non-touch payments already in use in many countries, with additional two-factor authentication via Touch ID, Face ID, PIN or passcode. This service allows Apple devices to wirelessly communicate with the system of place of sale by using near field communication antenna (NFC), "dedicated chip that holds encrypted payment information" (known as Safe Elements), and ID Touch Apple and Wallet.
It is available in the US, UK, Canada, Australia, Brazil, UAE, Russia, China, New Zealand, Singapore, Japan, Taiwan, and Hong Kong, as well as other European countries. Apple Pay supports most credit or debit cards, including American Express, Visa, MasterCard, and UnionPay, etc. Support banks vary.
Video Apple Pay
Services
Device compatibility
This service is compatible with iPhone 6, 6 Plus, iPhone 6S, 6S Plus, 7, Plus, 8, Plus, iPhone X, iPhone SE, iPad Air 2, iPad Pro and Apple Watch. Users with iPhone 5, 5C and 5S can use this service through Apple Watch, even if they do not have Touch ID security. Instead, Apple Pay is enabled with a passcode and will remain active as long as the user is using Apple Watch. It can store 8 or 12 cards depending on the device.
Technology
Apple Pay uses the EMV Tokenation Payment Specification.
This service stores personal customer payment information from the reseller by replacing the customer's Primary Account Number (PAN) credit card or debit card with the Device Account Number (AND), and creates the "dynamic security code [...] generated for each transaction". The 'dynamic security code' is the cryptogram in the EMV-mode transaction, and the Dynamic Card Verification Value (dCVV) in the emulation-mode magnetic stripe emulation transaction. Apple added that they will not track usage, which will remain between customers, vendors, and banks. Users can also stop remote services on lost phones through Find My iPhone service.
To pay at the point of sale, the user holds an authenticated Apple device to the point of sale system. IPhone users authenticate by holding their fingerprint to the phone's Touch ID sensor or face recognition via Face ID, while Apple Watch users authenticate by double-clicking the button on the device. To pay in a supported iOS app, users choose Apple Pay as their payment method and authenticate with Touch ID. Users can add payment cards to the service in one of three ways: through their iTunes account, by taking a photo of the card, or by entering the card information manually.
In the United Kingdom, payments with contactless cards are limited to Ã, Â £ 30 (previously Ã, Â £ 20 until August 2015) as they have only one authentication factor. Payments using Apple Pay have two-factor authentication and no transaction restrictions after the reseller updates the software in their terminal to support network specifications without the latest contact.
Apple assumes some liability for the use of fraudulent services. Banks are expected to bear the burden of services, and Apple is said to have negotiated a smaller transaction fee. In turn, banks hope to capture purchases previously handled without credit. Financial Times reported that Apple received a 0.15% cut of US purchases made with the service, but, after the UK launch, reported that Apple's cuts were much lower in the UK. This is largely due to the 2015/751 (EU) Regulation limiting exchange fees in the European Economic Area by 0.3% for personal credit cards and 0.2% for valid debit cards valid from June 8, 2015. In Russia, Apple receives 0, 05% for debit cards and 0.12% for credit cards from each purchase; in addition, banks pay 45 rubles per annum for each card added in the service.
Consumer Device Card Holder Verification Method (CDCVM)
In EMV-mode transactions, Apple Pay supports the use of the Consumer Device Card Holder Verification Method (CDCVM) using the Touch ID, or a mobile or watch code. The use of CDCVM allows for the device itself to provide verification for transactions and may exclude requirements for cardholders to sign a receipt or enter their PIN. In addition, in certain markets that have 'no contactless limit verification' using contactless cards (such as the Ã, Â £ 30 current limit in the UK and the $ 100 limit in Canada), the use of CDCVM may enable merchants to accept transactions higher than the amount this uses Apple Pay, providing their updated terminal software to support network specifications without the latest contact.
Global Acceptance
Apple Pay implements the Contactless EMV standard of the primary payment card network and must work in all merchants that support non-contact payments worldwide, regardless of whether they specifically advertise Apple Pay receipts or if Apple Pay support is offered by card issuers in those countries. However, due to differences in provision between countries (and even between publishers), users may experience receiving issues while traveling to another country. Some of the issues currently known include:
- Canada, the UK, and possibly other non-US VISA cards only support EMV-mode transactions and not magnetic line data emulation transactions. Most contactless U.S. terminals currently do not support transactions without EMV-mode contact (even if they support EMV contact transactions), and therefore visitors to the US will receive a 'Payments Can not Complete' message on the iPhone screen and errors on terminal when trying to use Apple Pay.
- American-issued American Express cards do not support EMV-mode, which prevents them from being used on certain public transport services, especially Transport for London, and in terminals that do not support US data-magnetic stripe emulation transactions.
Maps Apple Pay
History
2013
The service is in preparation for "a long time", as Apple acquires startup, hires executive and filed a patent related payment. Apple partnered with American Express, MasterCard, and Visa. Their joint project began in January 2013, though they have been discussing Apple's potential involvement for years. Their joint solution is a system where a single-use digital token replaces the transfer of personal information. A Visa executive says that 750 people in the company are working on an anonymized "token" system for one year, and other partners have the same team in cooperation. MasterCard began working on the project in 2013 and hopes that their cooperation will be "standard for mobile payments". Service announcements come when MasterCard and Visa policies create strong incentives to upgrade to a point of sale system compatible with mobile payments. Apple then approached several large banks in mid-2013 and did not divulge the names of other banks. To maintain confidentiality, JPMorgan established a "war room" without windows where most of the sensitive work was done. Of those 300 people in the project, about 100 people know that their partner is Apple. Other people close to the project did not know it was named "Apple Pay" until the announcement. Company participation remains a secret ahead of its announcement.
2014
The service was announced at the Apple iPhone 6 event on September 9, 2014. In its announcement, Apple CEO Tim Cook described the process of paying magnetic cards as damaged because of the dependence on plastic cards "magnetic interfaces are outdated and vulnerable", "exposed to numbers", and unsafe "security code" The iOS 8.1 software update that accompanied the launch of Apple Pay enabled service on compatible devices The company announced an API for app developers to build an Apple Pay checkout into their app.
2015
This service initially supports US issued payment cards. The international launch is in progress, beginning with support for UK issued payment cards in July 2015. On December 17, 2015, Apple announced that it will launch Apple Pay with fifteen major banks in China, and Chinese users can start using Apple Pay on February 18, 2016.
In October 2015, Apple vice president Pay Jennifer Bailey confirmed that KFC, Chile, and Starbucks will launch Apple Pay in 2016.
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On March 8, 2016, ExxonMobil officially launched Apple Pay support in the iOS Speedpass app, enabling customers pay for gas or car wash directly from their iPhone, eliminating the need to use the ExxonMobil NFC Keypass physical keypass at the transaction point.
On April 27, 2016, ANZ provides Apple Pay for their American Express and Visa cardholders in Australia.
On May 4, 2016, Kohl became the first retailer to allow the use of Apple Pay with Kohl Charge Card or other credit or debit cards registered with Apple Pay and also earn Yes2You Rewards loyalty points with a single tap using Apple Pay. JCPenney announced that they will launch the same in the near future.
On May 10, 2016, Apple Pay expanded its services in Canada to RBC, CIBC, ATB Financial, and Canadian Tire Bank customers. The expansion includes various support for Visa, MasterCard, and Interac, covering most major credit and debit cards in Canada. Apple Pay was previously only available in Canada for American Express cards issued by banks. Apple Pay expanded to TD Canada Trust, Scotiabank, and Bank of Montreal in June to complete the launch at Canada's Big Five financial institutions. Apple Pay support is also coming soon for Air Canada, Aldo, Domino's, Pizza Pizza, Zulily, and the TTC transit system in Toronto. In addition, the payment service is integrated into iPhone and iPad apps for Apple Store, Delta, Etsy, Fancy, Groupon, Kickstarter, Priceline, Starbucks, Ticketmaster, Uber and Zara from June 2016.
On May 19, 2016, Chime Banking started its support of Apple Pay.
Apple Pay was launched in Singapore on April 19, 2016, with a card issued by American Express. On May 25, 2016, it was extended to support Visa and MasterCard credit and debit cards issued by five major Singapore banks, which translates to approximately 83 percent of credit and debit cards in the country.
BMO, Scotiabank, and TD Canada Trust, which make up three of Canada's five largest banks, launched Apple Pay support on June 1, 2016.
On June 1, 2016, KFC announced that they are now accepting Apple Pay in some restaurants in the US, with national adoption to be completed by the end of the summer.
On June 3, 2016, Grubhub, the leading online mobile and food delivery and delivery platform in the US began receiving payments from customers using Apple Pay for two apps; Grubhub and Seamless. The company competes with its competitors in adopting payment services such as Caviar, DoorDash, and Postmates.
Apple announced in essence WWDC 2016 on June 13, 2016, that Apple Pay will enter three new markets; France, Hong Kong, and Switzerland during the following months in partnership with Visa, MasterCard, and American Express. Visa and MasterCard cards will be supported in all three markets, while American Express will also be available in Hong Kong. The specific credit, debit, and prepaid cards that may be used in each country vary depending on the participating issuer
- France at launch will include Banque Populaire, Boon, Caisse Epargne, Carrefour Banque, Orange, and Ticket Restaurant. It will also be accepted at many retailers in France, including Apple, Bocage, Boulanger, Cojean, Dior, Fnac, Le Bon Marchà ©, Louis Vuitton, Orange, Pret a Manger, Parkeon, Sephora, and at other locations where payment has been touched already be accepted.
- Hong Kong at launch will include Bank of East Asia (BEA), Bank of China (Hong Kong), DBS Bank (Hong Kong), Hang Seng Bank, HSBC, and Standard Chartered. Apple Pay will also be accepted at 7-Eleven, Apple, Colourmix, KFC, Lane Crawford, Mannings, McDonald's, Pacific Coffee, Pizza Hut, Sasa, Senryo, Starbucks, ThreeSixty, and at other locations where payment has been received.
- The launch of the Swiss service was conducted on July 7, 2016, with MasterCard and Visa. The earliest banks that use Apple Pay in Switzerland include Bonus Cards, CornÃÆ'¨r Bank (CornÃÆ'¨rcard), and Swiss Bankers. Apple Pay will also be accepted at retail locations Aldi Suisse, Apple, Avec, Hublot, Kiosk, Lidl, Louis Vuitton, Mobilezone, Press & amp; Books, SPAR, TAG Heuer, and at other locations where the touched payment has been received.
A month after Apple Pay was launched in Hong Kong, this service has been extended to The Bank of East Asia (BEA) and Hong Kong Telecom (HKT) 's Tap & Go network of contacts without contact. BEA's customers can add MasterCard and Visa credit cards eligible to Apple Pay and receive 5,000 bonus points between launch and August 22, 2016 while the first 30,000 customers who complete three or more Apple Pay transactions between launch and October 31 will receive a 25% cash rebate up to $ 180. Also, HKT Tap & amp; Open a customer who added a prepaid card to Apple Pay, and complete three or more Apple Pay transactions between launch and August 31, will receive a cash rebate of up to $ 50.
Under partnership with American Express, Hong Kong and Spain will also get Apple Pay support in 2016.
Bank of America provides several ATMs with Apple Pay support and the ability to withdraw cash using it. Apple Pay allows new ATMs to be equipped with NFC readers and logos used by Apple Pay users since the service was launched. The NFC reader is located just to the left of the card reader, although unlike the card reader, the NFC reader is not lit. Bank of America has launched a new website detailing a simple process to withdraw cash with smartphones (Google Pay, Samsung Pay, or Apple Pay). Currently, Bank of America says that "Consumer Debit Card, US Trust Debit Card, Small Business Debit Card (owner card only)" is supported. Wells Fargo and JPMorgan Chase both work to integrate Apple Pay support into their ATMs.
On August 18, 2016, Apple announced it has added Apple Pay support to its customers from Yorkshire Bank and Clydesdale Bank in the UK.
On August 29, 2016, ANZ expanded their support for Apple Pay to support MasterCard holders in Australia.
On September 7, 2016, Apple announced that iPhone 7 and Apple Watch Series 2 users in Japan can now add local credit cards and FeliCa cards to their Apple Pay wallet. Until now, only Suica cards are supported by Apple Pay, which can now be used in subway stations, department stores, etc., just like regular Suika cards. Apple Pay also supports payments through all the popular QUICPay-enabled terminals in Japan.
The Taiwan Financial Supervisory Commission began accepting applications from state banks offering Apple Pay to their customers on September 28, 2016. These include banks; CTBC Bank, Cathay, United Commercial Bank, E.SUN Commercial Bank, and Taishin International Bank.
On October 13, 2016, Apple Pay launched in New Zealand, available to customers with Visa credit or debit cards issued by ANZ Bank New Zealand.
On December 1, 2016, Apple Pay began operations in Spain, available to customers with cards issued by American Express, Banco Santander, Ticket Restaurante and Carrefour.
2017
On January 28, 2017, Credibanco and Redeban Multicolor activated non-touch payments such as Apple Pay; it is available by virtual prepaid card services such as Boon Payment by Wirecard, Square Cash by Squareup and Yandex Money. Also Apple Pay allows bank cards to be accepted.
On March 7, 2017, Ulster Bank and KBC Bank of Ireland became the first bank in the Republic of Ireland to launch Apple Pay.
On March 29, 2017, Apple Pay was launched in Taiwan with 7 banks.
On May 17, 2017, Apple Pay was launched in Italy (including San Marino and the Vatican City) at a profit. Unicredit and Carrefour Bank, also introduced support for Mastercard's Maestro and Visa VPay, are not available for use with Apple Pay in other countries.
On May 18, 2017, Apple Pay expanded in Ireland to include Allied Irish Bank bank.
On October 23, 2017, Apple Pay has extended to Sweden, Denmark, Finland and the United Arab Emirates.
On October 24, 2017 BNZ (Bank of New Zealand) became the second bank in New Zealand to offer Apple Pay to their customers with eligible Visa cards.
On December 14, 2017, Apple agreed to UK banks to provide Apple merchant accounts.
2018
On February 1, 2018, Apple has confirmed that Apple Pay will arrive in Brazil for announcing first quarter fiscal results for 2018.
On March 30, 2018, iOS 11.3 was released, Apple Pay supported the Shanghai Public Transport Cards (SPTC) and Beijing Transport Cards for local buses and subway and other public transport.
On April 4, 2018, Apple Pay was launched in Brazil with ItaÃÆ'º Unibanco (including Credicard).
On May 1, 2018, Apple has confirmed that Apple Pay will arrive in Norway, Poland, and Ukraine when it announces second quarter fiscal results for 2018.
On May 17, 2018, Apple Pay was launched in Ukraine with PrivatBank.
Availability
Supported countries
Supported networks
- Visa
- V Pay
- Mastercard
- Maestro
- American Express
- Find Cards in the United States
- CB in France
- Interac in Canada
- eftpos in Australia
- China UnionPay
- Suica, iD, QUICPay in Japan
- SPTC in Shanghai, China
- Yikatong, Beijing Transit Card
Reception
Reviews
Journalists noted some previous unsuccessful attempts from other resellers to build mobile payment services, including PayPal, Wal-Mart, Target, Google Wallet, and Softcard payments. They noted that previous efforts did not solve the customer's inconvenience problem, and felt that Apple Pay had the potential to do so. Adrianne Jeffries notes that fragmentation of the mobile payment market is partly due to Apple's refusal to enter the market. BusinessWeek Joshua Brustein adds that Apple has a history of letting "first mover fail" with early versions of service before releasing a "smoother version of the same idea". The Verge Dieter Bohn calls Apple Pay for "the most revolutionary product of the week" and the announcement of "the moment of simplification and integration of classical Apple", and partnership between payment services and Apple "a collaboration and a rare deal ". He estimates that the service effect on the mobile payment industry will be similar to the iPhone's effect on the smartphone industry. Nathaniel Popper of The New York Times refers to the degree of bank coordination with Apple as "complicated" and shows "preparation and investment" together. Some analysts add that the service may reduce the cost of standard credit card transactions over time, as fees have traditionally included credit card fraud. The banks are willing to work with Apple in the face of efforts such as Bitcoin and Merchant Customer Exchange, which seek to work around the card network.
The initial service review found it easy to use, but was not sure if the service would be widely adopted. The Verge 's Nilay Patel writes that product demos are "very smooth" and "a cohesive user experience". Patel says the process takes five to ten seconds on retail card readers, and adds that it may be less smooth in stores like Walgreens, where the cashier asks customers for loyalty cards and charitable donations. The New York Times Neil Irwin writes that Apple exaggerates the discomfort of credit cards. Among the benefits of plastic cards, it includes how others can make purchases on behalf of others and how dead phones can leave their owners abandoned.
There are many controversial topics, whether Apple Pay is safe or not.
Adoption
Apple announced that more than 1 million credit cards were registered with Apple Pay in the first 3 days of availability, making it the largest mobile payment system in the US at the time. There are 220,000 vendors participating when launched. Outside the United States and the United Kingdom, Apple Pay can be used with American and UK payment cards at compatible NFC-based payment terminals.
In the United States, Apple is facing opposition by the mobile payment industry, particularly Merchant Customer Exchange (MCX) that tests competitor systems known as CurrentC. Some CurrentC participants, such as Best Buy and Walmart, initially stated that they would not accept Apple Pay as a result of a transaction of exclusivity. CVS Pharmacy and Rite-Aid then disable all NFC payment systems to support CurrentC, though due to the exclusivity period ending in August 2015, Rite Aid has started accepting it on August 15, 2015. Best Buy has started accepting Apple Pay in all stores starting in October 2015. Target CEO Brian Cornell says that they will be open to receiving Apple Pay eventually after the chip and PIN are completed, but they are still involved with MCX.
Transportation for London, one of Apple Official Official Pay partners and one of the world's largest unrelated traders, became the most widely used Apple Pay merchant in the UK.
On February 11, 2016, 20% of iPhone 6 users in the United States reported using this service at least once. Apple maintains a list of the latest vendors that accept Apple Pay on its website.
On June 2, 2016, according to Fortune , Apple says its mobile payment platform gets millions of new users every week, but the company does not disclose the total number of Apple Pay users. Apple also revealed that the volume of transactions through this service five times compared to a year ago, and the volume of in-app payments more than doubled in the second half of 2015.
With the launch of Apple Pay in China, the service reached three million provisions in the first three days, while, more generally, it added one million new users per week worldwide.
On July 11, 2016, LCBO (Liquor Control Board of Ontario) confirmed that they received Apple Pay at more than 850 stores in Ontario, Canada. LCBO has gradually launched Apple Pay support since June in its stores, which has an NFC-based terminal for non-contact payments.
Starting August 19, 2016, Apple Pay will be available at Chick-fil-A restaurants across the United States, allowing fast-food buyers to make in-store purchases and on drive-thru using Apple Pay.
On September 7, 2016, Wayfair announced that it would support Apple Pay in Safari on iPhone, iPad, and Mac at launch.
On May 22, 2018, Translink announced that it will support Apple Pay at all tariff gates and on the bus
See also
- Apple Wallet
- Google Pay
- Microsoft Pay
- Samsung Pay
- LG Pay
References
External links
- Media associated with Apple Pay on Wikimedia Commons
- Apple Pay - the official site
Source of the article : Wikipedia
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