Re: Apple Pay

On 15 Sep 2014, at 09:48, Melvin Carvalho <melvincarvalho@gmail.com> wrote:
> On 9 September 2014 19:57, Stéphane Corlosquet <scorlosquet@gmail.com> wrote:
>> Apple just introduced Apple Pay in their live event at http://live.arstechnica.com/apples-september-9-2014-event/
>> 
>> Quoting:
>> Our mission is to replace your wallet, starting by focusing on payments.
>> ...
>> Digging for your cards is antiquated.
>> The magnetic stripe interface is outdated and insecure.
>> Most people who have worked on this have started with a self-interested business model and worked outwards..
>> We've created a new payment process called Apple Pay
>> ...
>> Apple Pay is built into every iPhone 6 and 6 Plus using NFC, the standard for mobile payments.
>> A new chip called the Secure Element stores your payment info encrypted and securely.
>> ...
>> Now, with just a touch, you've paid.
>> ...
>> When you add a new card, we don't store the number, and we don't give it to the merchant.
>> You get a device-only number protected by the secure element.
>> Every transaction generates a one-time code that is used.
>> You can suspend payments using Find My iPhone, since it doesn't directly use your card there's no need to cancel it.
>> ...
>> Apple doesn't know what you buy, where you buy it, or how much you paid.
>> Cashier doesn't even see your name, credit card number, or security code.
>> ...
>> Starting in the US with AmEx, MasterCard, Visa.
>> Also supported by a number of banks, 83% of all credit card volume in the US.
>> You can use it in 220,000 stores that already support contactless payments, also working with Macy's, Bloomingdale's, Wallgreens, Staples, Subway, other stores.
> 
> Note: http://www.dumb-out.net/apple-pay-takes-major-hit-wal-mart-best-buy-will-use-system/6515
> 
> Wal-Mart and Best Buy announced that they would not be implementing the scanners necessary for Apple Pay to be used in their stores. Apple Pay uses a near field communication (NFC) to connect with the latest iPhone to allow the user to make purchases from the device instead of using a card.
> 
> The primary arguments against using NFC is cost. After the Apple keynote announcement that the new iPhone 6 and Apple Watch would be equipped with the tap to pay technology, a flood of inquiries came into installers of the hardware as to the cost of acquiring and maintaining the necessary equipment required to service these customers. News that each individual unit would cost around $500 to purchase, not to mention install and maintain, quickly disenfranchised many retailers that could not afford the high buy in price for the new technology.

Do they have a choice? Apple seems to have chosen its moment well. Interesting case of how technologies get implemented when legislation 'eases' adoption...

"Many retailers are currently in the process of updating their point-of-sale hardware, as an upcoming change will see merchants that do not support EMV credit cards being liable for fraudulent, lost, and stolen cards. EMV credit cards, also known as "chip cards," include integrated circuits to authenticate debit and credit card purchases. The updated point of sale systems with EMV card support being adopted by retailers also generally include NFC, which means Apple Pay may work even at stores that have not specifically chosen to support the service."

Source: http://www.macrumors.com/2014/09/12/more-apple-pay-details/

Cheers Daniel

Received on Monday, 15 September 2014 09:05:40 UTC