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CUPERTINO, Calif. -- The future of mobile payments is about to get a big boost.
Apple Inc. introduced Apple Pay, which will allow owners of its forthcoming iPhone 6 and iPhone 6 Plus to pay for products from their smartphones using a near-field communication antenna design, a dedicated chip called the Secure Element, as well as extra security provided by Touch ID.
Apple Pay will also work with the newly unveiled Apple Watch, which will extend Apple Pay to more than 200 million iPhone 5, iPhone 5c and iPhone 5s owners worldwide.
To set up Apple Pay, consumers need to add their credit or debit card on file from their iTunes store account, according to the Cupertino-based technology giant.
“Security and privacy [are] at the core of Apple Pay. When you’re using Apple Pay in a store, restaurant or other merchant, cashiers will no longer see your name, credit card number or security code, helping to reduce the potential for fraud,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “Apple doesn’t collect your purchase history, so we don’t know what you bought, where you bought it or how much you paid for it. And if your iPhone is lost or stolen, you can use Find My iPhone to quickly suspend payments from that device.”
Apple Pay supports debit and credit cards from American Express Co., MasterCard Inc. and Visa Inc., issued by Bank of America, Capital One Bank, Chase, Citi and Wells Fargo.
Several retailers have already signed on to support Apple Pay, including Subway, Whole Foods Market, Duane Reade, Macy's, Bloomingdale's and Disney Store.
“Combining the trust, scale and security of Visa payments with Apple Pay will accelerate adoption of mobile payments,” said Charlie Scharf, CEO of Visa Inc. “We said from the beginning that token services would provide great new consumer and merchant experiences, and you’re seeing it today in our efforts with Apple, and there’s more to come.”
NCR Corp. will help enable retail and hospitality customers to integrate and accept Apple Pay through brick-and-mortar channels using traditional point-of-sale, and via mobile commerce channels using mobile device apps, as well as the intersection of both technologies.
"With Apple Pay, Apple has transformed mobile payments and will have an impact on the industry like never before. We are thrilled to be working closely with Apple to help retail and hospitality customers integrate this new method of payment into their operations, providing an easy, safe and secure way to pay with a single touch,” said Jimmy Fortuna, vice president of product development and chief technology officer, NCR Hospitality. “We believe Apple Pay and Apple’s extraordinary reach among consumers will further enable NCR to create business-transforming innovations for our customers.”