Apple enters the mobile payments business

Apple Pay is built into the iPhone 6 and will also be available through an iOS 8 update

Apple is getting into the mobile payments business with the launch of Apple Pay in the U.S. next month.

"We've placed a lot of energy into creating an entirely new payments solution," said CEO Tim Cook at the company's annual September product launch in Cupertino, California, Tuesday.

The service is built into both versions of the iPhone 6, which have an NFC (near-field communication) antenna, and Apple Pay will also be offered to those with earlier iPhone versions via an iOS 8 update.

Security for the service will be through the phones' Touch ID.

The service can be activated using credit card information stored in iTunes accounts. New cards can be added to the service by taking a picture of them through the iSight camera on an iPhone. When users add credit cards to Passbook, the numbers are not stored or shared on the device or Apple servers and neither is any information about a transaction.

The service applies a one-time, unique number to authorize each transaction.

"We have security integrated throughout both hardware and software in a way only Apple can," said Eddy Cue, Apple senior vice president of Internet Software and Services.

Apple Pay will be more secure than carrying around a wallet with credit cards in it, because the Find My iPhone service can be used to suspend service on lost or stolen devices, Apple said.

Mastercard, Visa and American Express are all on board for Apple Pay, as are banks accounting for 83 percent of credit-card purchase volume, the company said. Merchants including Sephora, Starbucks, Panera, Groupon, Staples and MLB.com have signed up to accept payments through Apple Pay by the end of the year, with more expected to come on board.

After the U.S. launch next month, Apple plans to offer the service in additional countries, but did not specify which ones or when.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Appleretailconsumer electronicsindustry verticals

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Weil

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?