Apple Pay has indeed arrived with a lot of fanfare, but not without a reason. The digital wallets of the average shoppers are always looking for a more straightforward way of buying things, and Apple Pay seems to be accomplishing this most perfectly.
Apple, right from the get-go, let enough buzz build around its latest goody and claimed that the launch this new payment system is as big an event for them as the launch of any avant-grade iPad or iPhone. And from the moment the first vibrations about the Apple Pay were felt, the rumor mills have been enduring the daily grind over the supposed features and capabilities that this new system would swing at us. Thankfully, Apple didn’t let all the excitement be for nothing. Apple Pay is a blockbuster payment system, and one that is deemed to find maximum takers. The focus has really been oscillating between Apple Pay, and Custom iPhone App Development, and both are affecting trends positively.
Meanwhile, Apple isn’t the Pioneer When it Comes to Using NFC
In its bare bones, Apple Pay makes use of the near field communication technology (NFC), which gives it a wherewithal to complete transactions with a wave. But before you jump the guns, this is not a technology that just popped up from nowhere. NFC has been in existence since the last 15 years, and has already powered a reasonably wide variety of electronic systems. Granted, not many use it, but that does not make it new-fangled.
Apple Has Indeed Thrown in Some New Ingredients
The cards and payment industry has never been ironclad. It has allowed itself to be reinvented consistently over the last few decades. The swipe terminals gained enough leverage, and so did the swipe-free terminals. The whole Swipe-concept was making news for all the right and the wrong reasons and that’s when Apple decided to step in. Sensing that its competitors could not rally the same to the finish line, Apple has made foray with an ambition to set a few things right and set a few benchmarks in the process.
Without further ado, let us understand how it all works out. Apple Pay is only supported by iPhone 6 and the Plus version of it, as only these two devices support the new hardware that comes along with NFC chipset and the security component.
The process is triggered by you getting your phone integrated with the credit card. Now, you can take picture of the credit card, or you can get your Apple’s store account swing into action. In the latter case, your card will be synced with your Apple store account for the process to be taken forward. Apparently, this loading system only enabled on Apple products since it it probably is the first brand to have got permission from the credit card companies.
Now, as soon as the number on the card is scanned by your phone, the call is made to the payment network or the respective bank that sends across the device account number. The whole process is referred to as tokenization.
Traditionally, tokenization simply substitutes your credit card information with irregular data that is modeled on the same structure as the original information. For instance, a tokenization system would accept the real 16-digit credit card number, pass it on to its database and return a randomized 16-digit representation of the same that looks different but shares mutual structure with the real credit card number. It is the payment networks that dictate the process of tonekization.
With tokenization, there is no need to reveal the actually CC number and that’s where it scores its brownie points.
How Apple Pay Does it
Taking it off from where we left, Apple has built partnerships with several major banks and payment networks already. With Apple Pay, you get a unique for every card and for the phone you are using. If there was no device-centric token, the security levels would experience a dangerous drop. But Apple Pay makes sure that apart form the the tokens that are credit card specific, the authentication through the device-specific tokens is made mandatory. Also, this way, only the bank and the payment network has your card information, and it is not stored anywhere on the apple server.
Meanwhile the device account number sent your device is also stored at a very secure security component. If you are jittery over the possibility that Apple may be tracking your transactions, you can heave a sigh of relief. The whole payment is made in a manner most privacy driven.
So, this contactless wallet Apply Pay provides you is rich in user experience since you do not have to manually type in the 16 digits. But there are bigger riches here in the form of a far more secure platform for making payments. Apple only concerns itself with the hardware while the banks and the payment gateways carry over rest of the process.