In keeping with its undeniable role as the consummate technological innovator, Apple, Inc. has announced that has created a way for Apple Watch and iPhone 6 owners to be able to use their devices to make in-store purchases. The company has been developing Apple Pay for several years and company spokespersons have claimed that the goal of the feature is to essentially blaze a new trail in the world of automated payment processing. Calling current in-store payment processes “fairly antiquated”, Apple Pay is intended to replace credit and debit card processors with a dedicated microchip that stores payment information. The company calls the chip the Secure Element and says that it works in conjunction with a near field communication antenna, Passbook, and Touch ID.

Apple executives have called the current payment system in America and around the world “broken” and have stated that Apple is ideally positioned to make the needed fix with the Apple Pay feature. They claim that the system of credit and debit cards to which the entire world of commerce has become accustomed is one that relies far too heavily on an outdated magnetic interface that is vulnerable on a number of levels, not the least of which is account information that can be accessed using little more than a cell phone camera. Apple pay is intended to completely revamp the payment processing industry.

How Does Apple Pay Work?

The new Apple Pay system may take some getting used to but it is something that is relatively easy and that the company believes will revolutionize how consumers make their purchases.  In order to use the Apple Pay feature, users add a credit or debit card from their iTunes account or use iPhone 6′s iSight camera to add an entirely new card. With the card information in the Apple Pay database, consumers then are able to use their iPhone 6 or Apple Watch to make purchases at the checkout counters of vendors that have Apply Pay capability. Purchases are then authenticated with Touch ID and can be made both online as well as at offline storefronts.

To complete the purchase transaction in-store, customers hold their iPhone or Apple Watch in front of the payment reader and then put their finger on the accompanying sensor to provide purchase confirmation. For online purchases, users will select the Apply Pay app as their method of payment (as opposed to credit or debit card or PayPal) and use Touch ID to confirm the purchase.

Which Companies Have Apple Pay Capability?
Some of the more notable companies that have already partnered with Apple to honor Apple Pay payments include Walgreens, Macy’s, McDonald’s, Subway, Disney, and all of Apple’s own retail stores. Many more companies are scheduled to offer the Apple Pay payment option. The software is built right into both the iPhone 6 and the iPhone 6 Plus as well as into the Apple Watch, however, users in the United States will have to wait until October to use Apple Pay when the applicable update becomes available.

To find out if Apple Pay is the right payment processing system for your business, contact us at 866-944-3244 or sales@servistree.com. Keep up with the latest news and information on credit card processing and mobile payments along with other small business news by subscribing to our blog by clicking here.