Apple Pay Anyone?

Apple Pay Header

After the release of the iPhone 6, one of Apple’s most talked-about new features is Apple Pay. There has been a lot of buzz in the market regarding the new application for our phones, and we thought it’d be a worthy topic to discuss.

Did you know though, that these wireless payment systems like Apple Pay and Google Wallet are not the first of their kind? The Nokia Communicator, released in 1996, could be considered one of the first smartphones in the world. The Finns were actually the first people to use these Communicators to wirelessly make payments at vending and parking machines. Basically what they would do was send a text message to a particular machine and the payment would be billed to their service provider later.

Nokia Communicator Series

So what about Apple Pay – how does that work? The setup is fairly simple; you can add credit/debit cards to your Passbook application by keying the details in manually, or by taking a photo of your card itself. Once your card has been verified, Apple Pay is then ready to be used in stores and even for in-app purchases. In participating stores, all you need to do at checkout is select the card you want to use and hold your iPhone over the NFC (near-filed communication) system with your finger (registered with Touch ID) over the home button. Voila! Then when a payment is complete, you will be notified by a beep, vibration and a check mark on your screen. Check out this video from Walgreens to see how it works:

Seems simple doesn’t it? But of course, with everything there are its individual benefits and drawbacks. Let’s talk about a few of them that we’ve been noticing in reviews all across the Internet.

Apple Pay Pros & Cons

Benefits:

  • It’s simple and easy to use. It acts as an all-in-one application where all your cards are stored and all you need to do is hold your phone out to make payments in stores with NFC systems at their checkout stations
  • You can even make app and in-app purchases with it
  • Apple Pay uses “tokenization” in storing card information, which is a security feature that allows each credit card’s number to be substituted with a different ID number for every transaction. This ID is the information that merchant’s receive on their point-of-sale systems when customers make payments.
  • To make payments using Apple pay, you require Touch ID (fingerprint verification)

Potential Drawbacks:

  • Lack of participation of merchants. Sure there are a ton of merchants that already accept Apply Pay, but there are still a ton more that need to adopt to idea
  • Only certain credit cards work with Apple Pay, and you might need the latest Apple devices for it to actually work
  • The ‘Find My iPhone’ feature can be used to quickly suspend payments from your phone, but in order for that to work, the phone must be receiving cellular or Wi-Fi signals, which means if phone is switched off, you won’t be able to do it
  • It is definitely convenient, but it can also be a security drawback of how simple it is to take a photo of your credit card to add it to your Passbook

What do you think of Apple Pay? Let us know if you’ve tried it out and how you like it :)

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