Apple Pay is a mobile payment and digital wallet service by Apple Inc. that allows users to make Payment in person, in IOS app, and on the web. It is supported on the iPhone, Apple Watch, iPad and Macintosh. It digitizes and can replace a credit card or /ref> It is very similar to contactless payments already used in many countries, with the addition of two-factor authentication via Touch ID, Face ID, PIN or passcode. The service lets Apple devices wirelessly communicate with point of sale systems by using a near field communication (NFC) antenna, a "dedicated chip that stores Encryption payment information" (known as the Secure Element), and Apple's Touch ID and Apple Wallet.
The service keeps customer payment information private from the retailer by replacing the customer's credit or debit card Primary Account Number (PAN) with a tokenized Device Account Number (DAN), and creates a "dynamic security code ... generated for each transaction". The 'dynamic security code' is the cryptogram in an EMV-mode transaction, and the Dynamic Card Verification Value (dCVV) in a magnetic stripe data emulation-mode transaction. Apple added that they would not track usage, which would stay between the customers, the vendors, and the banks. Users can also remotely halt the service on a lost phone via the Find My iPhone service.
To pay at points of sale, users hold their authenticated Apple device to the point of sale system. iPhone users authenticate by holding their fingerprint to the phone's Touch ID sensor or facial recognition via Face ID, whereas Apple Watch users authenticate by double clicking a button on the device. To pay in supported iOS apps, users choose Apple Pay as their payment method and authenticate with Touch ID. Users can add payment cards to the service in any of three ways: through their iTunes accounts, by taking a photo of the card, or by entering the card information manually.
In the United Kingdom, payments using contactless cards are limited to £30 (previously £20 until August 2015) as they have only one-factor authentication. Payments using Apple Pay have two-factor authentication and no transaction limit once retailers have upgraded the software in their terminals to support the latest network contactless specifications.
Apple assumes some liability for fraudulent use of the service. Banks are expected to carry the burden of the service, and Apple is said to have negotiated smaller transaction fees. In turn, the banks hoped to capture purchases that were formerly handled without credit. Financial Times reported that Apple receives 0.15% cut of US purchases made with the service, but, following the UK launch, reported that Apple's cut is much lower in the UK. This is largely because Regulation (EU) 2015/751 capped interchange fees in the European Economic Area at 0.3% for personal credit cards and 0.2% for personal debit cards with effect from June 8, 2015. In Russia Apple receives 0.05% for debit cards and 0.12% for credit cards of each purchases, in addition, the bank pays 45 rubles a year for each card added in the service.
On April 27, 2016, ANZ made Apple Pay available to their American Express and Visa cardholders in Australia.
On May 4, 2016, Kohl's became the first retailer to allow the use of Apple Pay with Kohl's Charge Cards or other credit or debit cards enrolled with Apple Pay and simultaneously earn Yes2You Rewards loyalty points with a single tap using Apple Pay. JCPenney announced that they will be rolling out the same in the near future.
On May 10, 2016, Apple Pay expanded the service in Canada to customers of RBC, CIBC, ATB Financial and Canadian Tire Bank. The expansion includes varying support for Visa, MasterCard, and Interac, covering most major debit and credit cards in Canada. Apple Pay was previously only available in Canada for non-bank-issued American Express cards. Apple Pay was expanded to TD Canada Trust, Scotiabank, and the Bank of Montreal in June to complete the rollout across Canada's Big Five financial institutions. Apple Pay support is also coming soon to Air Canada, Aldo Group, Domino's, Pizza Pizza, Zulily, and the TTC transit system in Toronto. Additionally, the payment service is integrated into the iPhone and iPad applications for the Apple Store, Delta, Etsy, Fancy, Groupon, Kickstarter, Priceline, Starbucks, Ticketmaster, Uber, and Zara starting in June 2016.
Apple Pay launched in Singapore on April 19, 2016, with American Express issued cards. On May 25, 2016, this was extended to support Visa and MasterCard credit and debit cards issued by Singapore's five major banks, translating to about 83 percent of credit and debit cards in the country.
On June 3, 2016, GrubHub Seamless, the nation's leading online and mobile food-ordering and delivery platform began accepting payment from its customers using Apple Pay on its two applications; Grubhub and Seamless. The company is keeping up with its rivals in adopting the payment service as Caviar, DoorDash, and Postmates.
Apple announced at its WWDC 2016 keynote on June 13, 2016, that Apple Pay will be entering three new markets; France, Hong Kong, and Switzerland over the following months in partnerships with Visa, MasterCard, and American Express. Visa and MasterCard cards will be supported in all three markets, while American Express will also be available in Hong Kong. The specific credit, debit, and prepaid cards that can be used in each country vary depending on the participating issuers
A month after Apple Pay launched in Hong Kong, the service has expanded to The Bank of East Asia (BEA) and Hong Kong Telecom (HKT)'s Tap & Go contactless payments network. BEA customers can add eligible MasterCard and Visa credit cards to Apple Pay and receive 5,000 bonus points between the launch and August 22, 2016 while the first 30,000 customers that complete three or more Apple Pay transactions between the launch and October 31 will receive a 25% cash rebate of up to $180. Also, HKT Tap & Go customers that add prepaid cards to Apple Pay, and complete three or more Apple Pay transactions between the launch and August 31, will receive a cash rebate of up to $50.
Bank of America is outfitting some of its ATM Machine with Apple Pay support and the ability to withdraw cash using it. The new Apple Pay enabled ATM is outfitted with the NFC reader and logo that Apple Pay users have become used to seeing since the service launched. The NFC reader is located directly to the left of the card reader, although unlike the card reader, the NFC reader does not light up. Bank of America has launched a new website detailing the simple process of withdrawing cash with a smartphone (Google Pay, Samsung Pay, or Apple Pay). Currently, Bank of America says that "Consumer Debit Cards, U.S. Trust Debit Cards, Small Business Debit Cards (owner card only)" are supported. Wells Fargo and JPMorgan Chase are both working to integrate Apple Pay support into their ATMs.
On September 7, 2016, Apple announced that iPhone 7 and Apple Watch Series 2 users in Japan can now add both local credit cards and FeliCa cards to their Apple Pay wallets. As of now, only Suica cards are supported by Apple Pay, which now can be used at subway stations, convenience stores, etc., just like regular Suica cards. Apple Pay also supports payment via all QUICPay enabled terminals that are already popular in Japan.
Taiwan's Financial Supervisory Commission began accepting applications from the country's banks offering Apple Pay to their customers on September 28, 2016. This includes the banks; CTBC Bank, Cathay, United Commercial Bank, E.SUN Commercial Bank, and Taishin International Bank.
On March 7, 2017, Ulster Bank and KBC Bank Ireland became the first banks in Republic of Ireland to launch Apple Pay.
On March 29, 2017, Apple Pay launched in Taiwan with 7 banks.
On May 17, 2017, Apple Pay launched in Italy (including San Marino and Vatican City) with boon., Unicredit and Carrefour Bank, also introducing support for Mastercard's Maestro and Visa's VPay, not available to use with Apple Pay in other countries.
On May 18, 2017, Apple Pay expanded in Ireland to include bank Allied Irish Bank.
On October 24, 2017, BNZ (Bank of New Zealand) became the second bank in New Zealand to offer Apple Pay to their customers with eligible Visa cards.
On December 14, 2017, Apple approved for UK banks to provide Apple merchant accounts.
On March 30, 2018, iOS 11.3 released, Apple Pay supports the Shanghai Public Transport Card (SPTC) and Yikatong for local buses, subways and other public transportation. The SPTC can also be used for public transportation in cities that have joined the City Union plan.
On April 4, 2018, Apple Pay launched in Brazil with Itaú Unibanco (including Credicard).
On May 17, 2018, Apple Pay launched in Ukraine with PrivatBank.
|+ Release dates|
|October 20, 2014|
|July 14, 2015|
|November 17, 2015|
|November 19, 2015|
|February 18, 2016|
|April 19, 2016|
|July 7, 2016|
|July 19, 2016|
|July 20, 2016|
|October 4, 2016|
|October 13, 2016|
|October 25, 2016|
|December 1, 2016|
|March 7, 2017|
|March 29, 2017|
|May 17, 2017|
|October 24, 2017|
|April 4, 2018|
|May 17, 2018|
|June 19, 2018|
|June 20, 2018|
Early reviews of the service regarded it as easy to use, but were not sure whether the service would become widely adopted. The Verge Nilay Patel wrote that the product demo was "remarkably smooth" and "a cohesive user experience". Patel said the process took five to ten seconds at a retail card reader, and added that it may be less smooth at stores such as Walgreens, where cashiers prompt customers for loyalty cards and charity donations. The New York Times Neil Irwin wrote that Apple exaggerated the inconvenience of credit cards. Among the plastic card's benefits, he included how others could make purchases on another's behalf and how dead cell phones could leave the owner stranded.
In the United States, Apple faced opposition by the mobile payments industry, particularly the Merchant Customer Exchange (MCX) which is trialling a competing system known as CurrentC. Several participants of CurrentC, such as Best Buy and Walmart, had initially stated that they would not accept Apple Pay as a result of exclusivity deals. CVS Pharmacy and Rite-Aid subsequently disabled all NFC payment systems in favor of CurrentC, although due to the exclusivity period ending in August 2015, Rite Aid has begun accepting it August 15, 2015. Best Buy has begun to accept Apple Pay at all stores starting in October 2015. Target's CEO Brian Cornell said that they would be open to accepting Apple Pay eventually after chip and PIN is done, but they remain involved with MCX. Recode.net
On June 2, 2016, according to Fortune, Apple said its mobile payment platform is gaining a million new users each week, yet the company did not reveal the total number of Apple Pay users. Apple also revealed that transaction volume through the service is five times what it was a year ago, and that payment volume within apps more than doubled in the second half of 2015.
On July 11, 2016 LCBO (Liquor Control Board of Ontario) confirmed that it accepts Apple Pay at all of its over 850 stores in Ontario, Canada. LCBO had been gradually rolling out Apple Pay support since June at its stores, which had NFC-based terminals for contactless payments.
Starting on August 19, 2016, Apple Pay will be available in Chick-fil-A restaurants across the United States, allowing fast food buyers to make their purchases both in-store and at the drive-thru using Apple Pay.
On September 7, 2016, Wayfair announced that they will support Apple Pay in Safari on iPhone, iPad, and Mac at launch.