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Apple Play Video Demo, Plus Apple Will Collect Fee from All Apple Pay Purchases

dgstorm

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We have a couple of intriguing things to share with you today regarding Apple's new Apple Pay mobile payment service. First, the above video is a great little demo on just how easy it will be to use the new service. Apple’s concept is as easy as it gets, which is unsurprising coming from them. Consumers paying a default card don’t even need to touch their displays in order to pay. You just need to move the handset near the payment terminal, then authenticate with Touch ID after the Apple Pay interface pops up. That's it! Very handy.

Also, it's worth sharing (especially for Apple investors) that Apple Pay will likely be a cash cow for Apple. Apple created individual deals with each bank it partnered with on this program. This includes big names like JPMorgan Chase, Bank of America, Citigroup, and many more. According to the deals struck with these companies, Apple will actually be collecting a fee from every transaction when using Apple Pay.

In conjunction with your credit card info stored on iTunes, Apple Pay uses the Touch ID fingerprint sensor combined with a new "Secure Element" functionality, and their new NFC antenna built-in to the iPhone 6 and iPhone 6 Plus. Interestingly, Apple Pay is also compatible with the Apple Watch which launches early next year.
 

Icenor

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But they didn't say anyhing about the Watch having Touch ID, did they?
How will you authenticate?
 

Icenor

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This is what it says on Apple's webpage:

Apple Watch
Double-click to pay and go. You can pay with Apple Watch — just double-click the button below the Digital Crown and hold the face of your Apple Watch near the contactless reader. A gentle pulse and beep confirm that your payment information was sent.

But I don't think the small button below the crown has Touch ID. So how does it authenticate the user? Maybe you can use the NFC of the watch, but you still have to pull up your phone to use the Touch ID.
 

J. A.

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There are sensors at it's back, which detect when it's worn.

When you put it on for the first time, you have to enter a code. When you take it off your wrist, it locks, and you have to enter the code when you put it on again.

As soon as it's removed from your wrist, you can't pay.
 

skimonkey

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I was surprised to have received an email alert from Chase the other day announcing the new partnership they have with Apple and Apple pay.

I'm a little hesitant and wish to watch it goes first before I dive in and begin using this feature. I still haven't used the "save your password" feature on my iPad/Mac. I guess I just don't feel all too comfortable yet to use these automatic features just yet.
 

twerppoet

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I'm satisfied with the security information and methods I've read about. Plus, the banks and credit card companies would not have signed on to this if it wasn't at least as secure as using a credit card. As is:

  • No credit card information gets stored on your device.
  • Other than your Apple ID credit card, no credit information is stored on Apple's servers.
  • Clerks never see any of your credit information. Not even your name.
  • Each transaction uses a one-time token. Meaning, even if someone managed to steal a token during one payment, it's useless for more purchases.
  • You can remotely wipe a phone's ApplePay ability if it comes up stolen.
  • More. . .
Perfect. Probably not. But way more security than you get with a credit card.

Not that it's gong to matter a lot at first. You're still going to have to keep your credit/debit card for years to come; just like you had to keep your checkbook handy for years after the first credit card came out.

As for Keychain/auto-login on the iPad, it has only one flaw that keeps me from using it more. Once you're past the lock screen, it's wide open. No further authentication is need to go to a secure site and sign in. You're lock screen passcode is everything.

For that reason I only use Keychain/auto-login for sites where my biggest risk is minor embarrassment and/or irritation. Anything associated with money or sensitive information stays in 1Password. {which is going to me much more useful under iOS 8}
 

skimonkey

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I'm satisfied with the security information and methods I've read about. Plus, the banks and credit card companies would not have signed on to this if it wasn't at least as secure as using a credit card. As is:

  • No credit card information gets stored on your device.
  • Other than your Apple ID credit card, no credit information is stored on Apple's servers.
  • Clerks never see any of your credit information. Not even your name.
  • Each transaction uses a one-time token. Meaning, even if someone managed to steal a token during one payment, it's useless for more purchases.
  • You can remotely wipe a phone's ApplePay ability if it comes up stolen.
  • More. . .
Perfect. Probably not. But way more security than you get with a credit card.

Not that it's gong to matter a lot at first. You're still going to have to keep your credit/debit card for years to come; just like you had to keep your checkbook handy for years after the first credit card came out.

As for Keychain/auto-login on the iPad, it has only one flaw that keeps me from using it more. Once you're past the lock screen, it's wide open. No further authentication is need to go to a secure site and sign in. You're lock screen passcode is everything.

For that reason I only use Keychain/auto-login for sites where my biggest risk is minor embarrassment and/or irritation. Anything associated with money or sensitive information stays in 1Password. {which is going to me much more useful under iOS 8}


That's a great post, Twerppoet. I haven't read much on the Apple Pay and worried how it compared to just pulling out your credit card. Security is such a big issue and wondered how much homework Apple did to get so many Bank and commercial institutes to partner with them. Apple pay looks very convenient too, especially for take-out! ;)
 

scifan57

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I'm wondering how long it will be before users outside the U.S. will get to try it out.
 

MarcosMark

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I'm satisfied with the security information and methods I've read about. Plus, the banks and credit card companies would not have signed on to this if it wasn't at least as secure as using a credit card. As is:

  • No credit card information gets stored on your device.
  • Other than your Apple ID credit card, no credit information is stored on Apple's servers.
  • Clerks never see any of your credit information. Not even your name.
  • Each transaction uses a one-time token. Meaning, even if someone managed to steal a token during one payment, it's useless for more purchases.
  • You can remotely wipe a phone's ApplePay ability if it comes up stolen.
  • More. . .
Perfect. Probably not. But way more security than you get with a credit card.

Not that it's gong to matter a lot at first. You're still going to have to keep your credit/debit card for years to come; just like you had to keep your checkbook handy for years after the first credit card came out.

As for Keychain/auto-login on the iPad, it has only one flaw that keeps me from using it more. Once you're past the lock screen, it's wide open. No further authentication is need to go to a secure site and sign in. You're lock screen passcode is everything.

For that reason I only use Keychain/auto-login for sites where my biggest risk is minor embarrassment and/or irritation. Anything associated with money or sensitive information stays in 1Password. {which is going to me much more useful under iOS 8}
Great post! Let's wait to see how it goes in day to day usage! It looks interesting and has all to be the next generation payments solution!


Enviado do meu iPhone TIM usando Tapatalk
 

Mickey330

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Will the fees ultimately be passed on though. That's what I'm curious about.

I would think not. The vendor/store already gets charged by the credit card company to use the credit card system. i would think those charges would be adjusted - but between the major credit card companies and Apple.

Yeah, maybe a small bump at the register as the store starts to put in the payment system (the money's got to come from somewhere). But, given that stores probably already have their prices set to account for the credit card charge, I wouldn't think it'd change.

Marilyn
 

twerppoet

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Will the fees ultimately be passed on though. That's what I'm curious about.

The fees already exist for normal credit card transactions, so there should be no discernible difference. Apple's rather low fee is probably offset by the cheaper low-risk fees they were able to negotiate due to their finger-print technology. Anyway, that's the rumors I've been hearing.
 

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