What is Apple Pay and How Can You Use It

Apple Inc. (NASDAQ:AAPL) has launched it’s Apple Pay mobile payment system for over 10 million iPhone 6 and iPhone 6 Plus users in the U.S.

The new mobile payment system will come as an upgrade on the new iPhones and iPads (Mini 3 as well as Air 2); however the tablets will only be able to utilize Apple Pay for in-app purchases.

The NFC (Near Field Communication) technology was first used for mobile payments system in 2010, when Google incorporated the feature in its Nexus S phone. Google launched Google Wallet in 2011, which allowed users to pay with their smartphones at major outlets of the country. However, smartphone users were skeptical about the security of mobile payments system, and showed reluctance in switching to these methods. Google Wallet therefore failed to attract masses for this same reason.

Apple Pay

But Apple is optimistic about the launch of Apple Pay this Monday, having already secured acceptability at some of the biggest clients in the U.S., including McDonald’s Drive-Thru, Macy’s, Whole Foods, and Staples. The Apple Pay will also be accepted at all stores having NFC readers.

For iPhone 6 and 6 Plus users, as well as users of iPad Mini 3 and Air 2, here is a small guide of what to expect from Apple Pay feature when it comes to their device on Monday;

  • The Apple device will have a new option to upgrade to iOS 8.1, the upgrade loaded with Apple Pay. By upgrading to iOS 8.1, the new devices will be enabled with Apple Pay feature
  • To use Apple Pay as you payment method, users will first need to upload their credit card information on their Appel device. To do so, users need to open Passbook, an app on iPhone and iPad, and add their credit card on it by scanning the card via the rear end camera of the device
  • The Apple Pay will be able to use this scanned version of the card for all payments that will be made through it
  • Over 220,000 outlets in the U.S. will be accepting Apple Pay as a valid method of payment by Monday. New users can test the service at any one of these outlets
  • To pay using Apple Pay, users need to hold down on the TouchID sensor installed on their Apple device and point it at the reader accepting Apple Pay. The fingerprint authorization will prompt the device to send payment to the reader it is pointed towards, and payment will be made.

Some critics have pointed out that storing credit card information on the phone may be a security risk in itself; it must be noted that cancelling credit cards stored on the phone will be the only option available to users in case their iPhone or device is stolen.

But Apple has ensured its fingerprint sensor is accurate enough to disallow fraudulent usage of Apple Pay. According to Tim Bajarin, an Apple analyst, Apple would have refrained from launching this service if the company had any doubts about its security.

It will be interesting to see how Apple Pay is received by Apple product users; the market is buzzing with this latest payment method introduced by Apple Inc. (NASDAQ:AAPL), but will it be as secure as Apple claims it to be? Only time will tell!