Hands-On First Impressions of Apple's New Payment Initiative, Apple Pay

[Ray2]

They can already take a photo of your credit card and use it online. The whole point of Apple Pay is that you don't give out your credit card, so it's more secure.

Don't be too sure about that. In 2012 I went through 6 Mastercards. My bank narrowed to down to 3 possibilities. One was Apple who has my credit card on file. During that conversation they stated Apple had had unauthorized access to people's records. Because this stuff does not need to be reported, and most merchants do not report it, does not mean it doesn't happen or its safe.

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The banks and credit card companies are now pushing for it because lets face it, the current system is a joke security wise with near constant fraud and hacks (like the target hack).

The current system has been a joke for decades. As long as the banks can pass their losses back to their customers, they have no incentive to battle the merchants.

 

[kugino]

i'm just jealous that someone has tickets to the dodgers - giants game this friday.

 

[laudern]

I have a question relating to apple pay and the apple watch.

It was said that payment can be made using the watch. Can payment be made using the watch which is connected to a 5/5c/5s?

 

[Lancer]

I have a question relating to apple pay and the apple watch.

It was said that payment can be made using the watch. Can payment be made using the watch which is connected to a 5/5c/5s?

Good question.

A better one is how long will it come to countries outside the US.

 

[Vejper]

I have a question relating to apple pay and the apple watch.

It was said that payment can be made using the watch. Can payment be made using the watch which is connected to a 5/5c/5s?

According to http://www.apple.com/apple-pay/ it will be possible.

At the bottom:

"Apple Pay is compatible with these devices.
iPhone 6 iPhone 6 Plus Apple Watch
Paired with iPhone 5, iPhone 5c, iPhone 5s, iPhone 6, or iPhone 6 Plus. In-store purchases only."

 

[DudeDad]

how so? I would avoid using it until Apple proven their security... with recent iCloud hack... I trust Apple even less... especially with all these private info...

P.S. this is just other thing (along with the watch) that Apple is trying to push iPhone 6 sale... There is absolutely nothing so special about iPhone 6... nothing

I don't believe your CC info is actually kept in the cloud.

 

[ptb42]

So like Touch ID, if I moved to another iPhone 6 for maybe a genius bar visit or such, I would have to re-enter my fingerprints AND credit card data??

Since the Device Account Number is unique to your former phone, I would expect that you would.

You might be able to avoid that by entering all your credit cards in the Apple Store. From what I read yesterday, the card(s) already entered there will be available without any additional effort.

However, adding a credit card to your Passbook will be easy: you just take a picture of it. Of course, that may not work with a worn credit card that has lost the highlighting on the raised numbers. And, you may still have to enter the CVV. But, I don't consider that to be a big deal.

I only carry a small number of cards: ATM card, personal credit card, company credit card, and HSA card. But, I have a few other credit cards that I take out of the safe for specific purposes when I need them. It will be nice to be able to put them in my phone and have them available without any extra effort.

Of course, it will require widespread adoption of NFC among merchants. But, they have to replace their PoS terminals in the next year to support EMV, and Apple's initiative just provided a big incentive for them to include NFC support.

 

[Robstevo]

Having used Google Wallet on Android for years, you Apple folk are in for a world of disappointment.

Retailers don't trust contactless payments, terminals are often non-functional and it's generally a highly unreliable method of payment.

Don't shred you cards yet...in fact, not much will change in the way of contactless (NFC) payments for at least 6-8 more years. This is a fact.

Maybe in America but here in Australia I use tap and pay all the time, and an Australian bank signed an exclusive with Samsung , so anyone who has a Samsung s5 can used the NFC chip as a method if payment for any pay pass terminal. So yea here in Australia it's already happening, and I haven't seen a store in ages that hasn't got tap and pay

 

[ptb42]

I wonder how they implemented adding cards to the payment system. It can't be as simple as taking a picture of the card.

I would expect at least the CVV to be required (which is on the back of the card).

Another alternative is to use what some banks do for ACH transfers when you set one up: they make a couple of small deposit transactions, and require you to enter them to complete the verification. You would need access to the account (or account statement) to get that information.

 

[BlueCreek]

This may be a dumb question but I don't know a lot about NFC. Can ApplePay be used with the current wireless payment terminals in the UK? Which are currently used, for example, by Barclays contact-less cards.

 

[Robstevo]

This may be a dumb question but I don't know a lot about NFC. Can ApplePay be used with the current wireless payment terminals in the UK? Which are currently used, for example, by Barclays contact-less cards.

I would imagine so if they are the same as the ones in Australia because the galaxy s5 over here works with those terminals

 

[Joey225]

So I have to assume that in theory any of those touch to pay sensors out there, like the ones at my local convenience store, should support this.

 

[ptb42]

Magnetic swipe cards are no longer a thing after October next year.

Magnetic stripes will live on for a while: merchants will still be free to use magstripe terminals. They just have to assume any liability for fraud.

But, the deployment of EMV terminals is phased: only point of sale (PoS) terminals are affected next year. There are separate milestones for ATMs and fuel dispensers (pay at the pump):

04/2015: VISA (and PLUS network) ATM must support EMV, but magstripe can still be used
10/2015: Liability shifts to merchants at PoS if not using EMV, except fuel dispensers
10/2016: Liability shift for Mastercard ATMs
10/2017: Liability shift for VISA ATMs
10/2017: Liability shift for fuel dispensers

I should note that the ATM liability shift is only for ATM transactions handled by ATM or Mastercard (i.e. a cash advance). Individual banks may have their own policy, but their ATMs will have to support EMV for network transactions.

 

[senseless]

Will this work without an available network connection? Quite often, I cannot use Siri because of this problem.

 

[roadbloc]

This stuff has been about for years. I still don't get the big deal just because Apple have done it now.

 

[kappaknight]

There's no way Apple Pay will block CC companies from seeing where you shop and what you bought. I don't know who's paying who, but that info is most likely false.

I'm sure the CC companies can match transactions with those retailers directly for the data... but Apple's claim is that they're not collecting it for their own use and they're staying out of it.

I don't recall them saying they'll block their partners from collecting it though.

 

[MRI3T]

how so? I would avoid using it until Apple proven their security... with recent iCloud hack... I trust Apple even less... especially with all these private info...

P.S. this is just other thing (along with the watch) that Apple is trying to push iPhone 6 sale... There is absolutely nothing so special about iPhone 6... nothing

GET YOUR FACTS RIGHT!! Be a good complainer and do your research b4 you complain!!!! Ur points aren't even valid/correct!!
And thank you in advance for NOT buying one, that's one less person that has to wait for stock to replenish, someone who TRULY DESERVES it! JS

 

[afsnyder]

I've been paying with Google Wallet for over 2 years now... why is this better?

Idk what other people have been saying but for me it's that its integrated into multiple apps AND uses Touch ID has the main password. Way more secure theoretically too.

 

[Vinamra]

That's a good point... There HAS to be some kind of verification step to ensure that you're the owner of a card you add (right?!)

To add a card to your phone, you take a photo, and take it to your bank. They do the verification and once its approved by the bank, only then will the card show up in the phone. They showed this verification step at the keynote.

What I don't understand is, in order to make a payment, I need to activate the NFC by bringing it near the payment device and then approving the transaction by placing my finger on the TouchID. Cook mentioned that Apple pay would work with the watch as well. If the watch lacks a TouchID, how is the verification going to be done? Also, will payments via the watch work if I have a 5S?

 

[Sloppy.Joe]

i'm looking forward to a hands on evaluation...

 

[thisrocks]

In Australia we've had NFC's in our debit/credit cards for a loooong time now (tech years) which is available for purchases under AU$100 and PIN access (now by law) for anything higher

That said, I'm super excited at the thought of this, as having (NFC) access to all my cards and having the liberty to only carry around one bare essential card with me will be a solid boon (It has an NFC in it too).

 

[mdelvecchio]

Don't be too sure about that. In 2012 I went through 6 Mastercards. My bank narrowed to down to 3 possibilities. One was Apple who has my credit card on file. During that conversation they stated Apple had had unauthorized access to people's records. Because this stuff does not need to be reported, and most merchants do not report it, does not mean it doesn't happen or its safe.

that anecdote has nothing to do w/ this payment system. nobody at apple can know what your cc number is since it's on your phone in the new chip, only, and not on apple's servers. nor does apple log your transaction history. when using it a unique, temporary cc number is issued to the merchant, so they dont have it, either.

more secure than using a normal cc in every way.

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This stuff has been about for years. I still don't get the big deal just because Apple have done it now.

oh really? what other mobile phone issues a unique, "dummy" cc number to the merchant during the transaction such that if the merchant is hacked (Target, Home Depot) the stolen numbers are worthless? which of these also has a dead-simple, easy-to-use biometric authentication feature like TouchID?

be specific.

 

[rlunder]

how so? I would avoid using it until Apple proven their security... with recent iCloud hack... I trust Apple even less... especially with all these private info...

P.S. this is just other thing (along with the watch) that Apple is trying to push iPhone 6 sale... There is absolutely nothing so special about iPhone 6... nothing

Agreed. We, at LoopPay, welcome the news of Apple Pay and think it will ignite consumer interest and help advance mobile payment adoption. However, to bring consumers the ease of mobile pay, reasonable merchant acceptance is critically important. Currently in the U.S., only ~3% of merchants accept NFC. NFC penetration takes patiences and investment. Until we get there, consumers still need to carry wallet and fumble through cards most of the time. It is still very difficult to change the consumer payment behavior to date.

LoopPay uses advanced MST Technology that is available in over 90% of payment terminals.

 

[cowbuoy]

AT LEAST last 4 digits of the credit card will be unencrypted on the merchant end in order for them to print a receipt that you can match with the credit card monthly statement/bill.

Didn't I hear something about some type of Apple Pay rewards program ? Or was that just a rumor?

 

[Designer Dale]

If all you have to do to add your card to the Apple Pay system is to take a picture of your credit card, what's preventing your waiter or bartender from doing the same thing with your card? It sounds like it just got a lot riskier to use your credit card in public.

Cook said the process was to take a photo of your card and have your bank authorize it for use. I presume this entails taking both the card and phone down to the bank for a one time verification. Kind of like getting that pic on the card done for the current ones.

Another thing for Apple Pay, the card won't wear out.

My bank (debit and credit) is on the initial list. The thought of a very thin (and light, too) wallet just moved me into the upgrade line. I wasn't there at 10 am Tuesday.

Dale