With the launch of Apple Pay has huge potential benefits for both merchants and shoppers is a short term or near term reality. This is due to two primary benefit reasons.
The first benefit is that Apple's enormous global brand power backed up by a simple, intuitive payment flow with Apple Pay means it stands the greatest chance yet of making mobile payments in store a natural payment flow method for a critical mass of shoppers.
Also, Apple as a company is partnering with both online issuing banks and online leading retailers at a rapid pace is a significant boost.
Second benefit, the introduction of Apple Pay is a catalyst that will be able to improve the in-store shopper experience in new and exciting ways.
With Apple Pay, customers can start making payments with the touch of a finger. Apple Pay offers an easy, secure and private way to pay using Touch ID on iPhone 6 and iPhone 6 Plus in stores and within apps.
Payment flow with Apple Pay in stores is fast and easy to use. Simply hold iPhone near the contactless reader while keeping a finger on Touch ID.
Users of the iPad Air 2 and iPad mini 3 will be able to use Touch ID on their devices for Apple Pay within apps. The new service will be enabled by a free software update to iOS 8.
Payment flow Apple Pay is designed to protect the user's personal information.
It doesn't collect any transaction information that can be tied back to a user and payment transactions are between the user, the merchant and the user's bank.
iPhone Apple does not collect your purchase history, so when you are shopping in a store or restaurant payment flow with apple don't know what you bought, where you bought it or how much you paid for it.
Infact, the card numbers are not stored on the device, instead, a unique Device Account Number is created, encrypted and stored in the Secure Element (SE) of the device.
The Device Account Number in the Secure Element is walled off from iOS and not backed up to iCloud.
Checkout payment flow with apple pay is simple and can happen with a single touch—there's no need to manually fill out lengthy account forms or repeatedly type in shipping and billing information.
Your actual card number is kept private and not shared with the online merchant.
Online shopping within apps allows users to pay for physical goods and services including apparel, electronics, health and beauty products, tickets and more.
FingerPrints and Passbook
Fingerprints will be harder to replicate than the usual four-digit code that people use. You can "change" a PIN if someone does replicate it.
However, Passbook presents itself with the default Credit Card (cc) when you place your phone near the terminal through Near-field or nearfield communication (NFC), then you just choose the card if not the default card, and touch ID.
Passbook can also stores your boarding passes, tickets, coupons, and more. Now it can store your credit and debit cards, too.
To get started, you can add the credit or debit card from your iTunes account to Passbook by simply entering the card security code.
To add a card on iPhone 6, iPad Air 2 or iPad mini 3, you go into Settings, open Passbook and Apple Pay, and select "Add Credit or Debit Card".
On iPhone, you can also just open Passbook, then swipe down and tap the plus sign. From there, use your iSight camera to enter the card information or type it in manually.
The card you had stored in iTunes is your default payment card, but you can always switch it in Settings.
Payment flow with Apple Pay works with most of the major credit and debit cards from the top banks online.
Just add your participating cards to Passbook and you'll continue to get all the rewards, benefits, and security of your cards.
Could Apple Gains On Paypal?
Apple is currently working on the Apple Watch and by the time of its launch, it is expected that the mobile payments app would gains momentum with consumers at the expense of PayPal - the well establish.
There is an expectation that some smartphone owners are more likely to use of Apple Pay with the service helping to spark consumer demand for mobile payment technologies.
Probably, Apple Pay is the top choice in terms of mobile payment applications consumers plan on using in the near future.
Smartphone owners using iOS are more than twice as likely to use mobile payment apps compared to Windows Phone, BlackBerry, Android users.
The arrival of Apple Pay has catalysed a wave of strategic moves across the mobile payments ecosystem.
Many vendors will look to capitalise on the growing contactless payments infrastructure and secure a foothold in this rapidly evolving sector.
Over time, we will see a slow, yet steady, improvement in the perception of security over the past year as there will be a perception that mobile payments are more secure than traditional credit cards. Although consumer perceptions of security remain an issue.
Apple Pay is More Secure Payments
Excuse me please can I have my bill and pay. When a waiter or attendant bring over your bill and you pass over your credit or debit card to pay. Guess what? Your card number and identity are visible.
With payment flow Apple Pay, you will not be using your real debit and credit card numbers when you add your card.
Instead, you will be using a unique assigned Device Account Number, encrypted and securely stored in the Secure Element, a dedicated integrated chip (IC) in iPhone, iPad and Apple Watch.
This unique assigned device account number is never stored on Apple servers. When you buy or make a purchase of goods, the Device Account Number, along with a transaction-specific dynamic security code, is used to process your payment flow.
So your real debit or credit card numbers are never shared by Apple with merchants or transmitted with payment flow.