The big media event is unfolding tomorrow and besides the much-awaited new iPhone and iWatch, certain new software features, as well as new services, are said to be announced. One of the new services could be a totally new mobile payments system, according to a new report coming from Bank Innovation.
Token technology is said to be a favorite amongst financial institutions, as it’s considered to be extremely secure. Instead of transmitting account and credit card numbers, tokenization sends complex codes over the air between devices.
Thus, these codes are only used one time, which means that even if they are intercepted by a third-party with the intent of fraud, it wouldn't help them.
Bank Innovation is citing both inside sources familiar with Apple’s plans and previously-filed patents which cover ‘secure communication between trusted parties’ using a token or certificate authentication method.
Source: Bank Innovation