Apple Pay

Apple Pay is Apple Inc.’s mobile payments and digital wallet service that allows users to make payments in person, in iOS and on the web. It is supported on iPhone, Apple Watch, iPad and Mac. It digitizes and can replace a chip and PIN transaction with a credit or debit card at a point of sale contactless terminal. Apple Pay does not require any contactless Apple Pay payment terminals; works with a merchant who receives contactless payments. This is very similar to contactless payments already in use in many countries, with the addition of two-factor authentication via Touch ID, face ID, PIN, or access code. The service enables Apple devices to communicate wirelessly with point of sale systems using a nearby field communication antenna (NFC), a “dedicated chip that stores encrypted payment information” (known as Secure Element), and an Apple Touch ID and wallet.

It is available in the United States, United Kingdom, Canada, Australia, Brazil, United Arab Emirates, Saudi Arabia, Russia, China, New Zealand, Singapore, Japan, Taiwan, Hong Kong, Germany, Denmark and most recently in Hungary. like other European nations. Apple Pay supports most major credit card or debit card systems, including American Express, Visa, Mastercard, and UnionPay. Participating banks vary by region.

Apple Pay uses the EMV Payment Tokenisation Specification.

The service stores customer payment information privately from the vendor by replacing the customer account number (PAN) with a customer credit or debit card with a tokenized account number (DAN) and creating a “dynamic security code […] generated for each transaction” security code “is the cryptogram in the EMV mode transaction and the dynamic card authentication value (dCVV) in the magnetic stripe emulation mode transaction. Apple added that they would not track the usage that would remain between customers, vendors, and banks. service on a lost phone via Find My iPhone.

To pay at point of sale, users have their verified Apple device for sale. IPhone users authenticate by holding their fingerprint on 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. If you want to pay for supported iOS applications, users choose Apple Pay as their form of payment and authenticate using Touch ID or Face ID. Users can add credit cards to the service in any of four ways: via a credit card listed on their iTunes accounts, taking a card photo, providing a card issuer application, or manually entering card information.

Although users receive immediate notification of a transaction, Apple Pay is not an immediate payment tool because the transfer of funds between counterparties is not immediate. The settlement time depends on the method of payment selected by the customer.

In the UK, contactless card payments are limited to £ 30 (previously £ 20 to August 2015) because they only have one-factor authentication. Payments made by Apple Pay have two-factor authentication and no transaction limit once retailers have upgraded software at their terminals to support the latest network contactless specifications.

Apple takes some responsibility for fraudulent use of the service. Banks are expected to bear the burden of service and Apple reportedly negotiated minor transaction fees. On the other hand, banks hoped to capture purchases that had previously been processed without credit. The Financial Times announced that Apple will receive a 0.15% reduction in US purchases made with the service, but announced that the UK cut was much lower after its UK launch. This is mainly due to the fact that Regulation (EU) 2015/751 reduced interchange fees in the European Economic Area to 0.3% for personal credit cards and 0.2% for personal debit cards with effect from 8 June 2015. In Russia, Apple will receive 0.05% for the overdraft. Cards and 0.12% on credit cards of each purchase, plus the bank pays 45 rubles a year for each card added to the service.