Apple Pay: New mobile payment system set to launch on October 20

apple pay

Apple Pay, Apple’s new mobile payments service is set to launch on October 20. So, if you own an iPhone 6 or iPhone 6 Plus and you’re in the U.S, you can make payments for goods and services with your iPhones, both in stores and within participating apps, using an NFC chip built into the new iPhone models and the upcoming Apple Watch. Apple Pay will also let iPhone users purchase items in apps with one touch, a move that could be a threat to other Internet payments services like PayPal.

Apps from Target, Groupon and Instacart will support Apple Pay. To secure transactions, Apple uses a method known as “tokenization,” preventing user’s personal information from being sent over the air. Apple Pay participating merchants include Walgreens, Duane Reade, Macy’s, MCDonald’s, Bloomingdale’s, Disney Store and Walt Disney World Resort, Sephora, Staples, Subway, and Whole Foods Market.

How it works

Apple Pay is fast and easy to use. Simply hold your device near the payment terminal while keeping a finger on Touch ID. There’s no need to worry about filling out lengthy account forms or repeatedly type in shipping and billing information. When a payment is successfully made using Apple Pay, users will fell a subtle vibration and hear a beep to confirm the payment is complete.

Apple has partnered with the three major payment networks in the United States: Visa, MasterCard, and American Express. Apple has also signed deals with major banks, including Bank of America, Capital One, Chase, Citi, American Express, and Wells Fargo, which are responsible for 83 percent of all credit card volume.

Release Date

Apple Pay will be available in the US through an update to iOS 8 on Monday, October 20.

Via: Apple