Alongside the unveiling of iPhone 6 and iPhone 6 Plus smartphones, Apple has also launched a new mobile payment system today called ‘Apple Pay’, that allows users to pay at the counter with an iPhone 6 or iPhone 6 Plus. Apple notes that users will be able to use their phones at the cash register in order to pay for everyday purchases, using an NFC antenna, Touch ID, Passbook, and something that Apple terms as the “Secure Element”.
The system basically works by adding a card to a user’s iTunes account, when then gets added to Passport. Apple says that when you add a new card, they don’t store the card or give it to the merchant. They use a one-time payment number along with a dynamic security code, so there’s no longer a static code on the back of the card. Users can also suspend payments from that device if it’s lost or stolen, so there’s no need to cancel the credit card.
With the launch of Apple Pay, the Cupertino giant has also announced a number of partners in addition to its own retail stores which will support the payment system. These include the likes of Subway, McDonalds, Disney, Walgreens, Macy’s and Sephora. Apple says that Groupon, Uber, and Panera have also integrated Apple Pay to allow customers to pay without having to enter any payment information.
A software update will bring Apple Pay to US users with Amex, Visa and Mastercard support in October of 2014. The company has announced an API for Apple Pay as well while adding that it is “working hard” to bring the feature to other countries.