Apple Pay is a mobile payment and digital wallet service launched by Apple on October 27, 2014, allowing users to make payments using compatible devices like the iPhone 6 and Apple Watch. The service utilizes NFC technology for secure transactions and has partnered with many major banks, primarily available in the U.S. with international expansion planned. Apple Pay emphasizes security through touch ID authentication and tokenization, reducing the risk of exposing sensitive card information during transactions.

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Apple has been known to deliver top-notch products & services to its customers since long back. This is
what motivated Apple to come up with yet another invention in the digital world hence they came up
with a digital currency option – Apple Pay. Apple Pay is a mobile payment & a digital wallet service. It
was launched on 27 Oct, 2014 & lets its users make the payments using iPhone 6, 6 Plus, Apple watch,
etc. compatible devices. Currently the service is exclusively open for US candidates but Apple aims to
expand its horizon worldwide.
Apple Pay is an NFC, that is, Near Field
Communication based mobile payment system.
It allows the iPhone, iPad, & other Apple-
compatible devices to make payments, quick
purchases from all the major retailers. All that an
Apple device owner needs to do is, take their
Apple device near the credit card terminal, & use
a Touch ID for making varied purchases. Even in-app purchases can be made using Apple Pay.
Apple Pay is exclusively available on newer versions of iPhones like: iPhone 6, iPhone 6 Plus, Apple
watch, etc. This service is unavailable for iPhone 5S, 5C and other previous models.
Apple has partnered with most of the major banks of the United States to offer the Apple Pay services to
its users. This innovative & exquisite payment system works really well with credit/debit cards from
various financial giants like: American Express, Citibank, Chase, Bank of America, etc. It is estimated that
more than 500 banks will be able to support Apple Pay by the end of 2015.
This mobile payment system is utterly secure. It matches the user’s finger print before initiating a new
transaction. The users additionally need to use their Touch IDs for completing their payments, the
similar way that they incorporated for iTunes purchases.
Not only is it secure, but also does it allow the users to lock down the Apple Pay remotely from any
browser or an Apple device, in case the device you’re using to carry out the Apple Pay transactions gets
lost, thereby adding on to the security features.
Even new credit cards can be added to make purchases using Apple Pay for future references. The user
just needs to add relevant info & their new card will then be added to this marvelous mobile payment
system.
Apple Pay is a mobile payment solution and digital wallet service by Apple Inc. that lets users make
payments using the iPhone 6, iPhone 6 Plus, Apple Watch-compatible devices (iPhone 5 and later
models), iPad Air 2, and iPad Mini 3. Apple Pay does not require Apple-specific contactless payment
terminals and will work efficiently with Visa's PayWave, MasterCard's PayPass, and American
Express's ExpressPay terminals. The service has begun initially only for use in the United States, with
international roll-out planned for the future.
Apple Pay

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It has seen more adoption from banks, retailers and credit card companies than previous offerings from
Google (like: Google Wallet) or cellular networks (like: Verizon and AT&T). And while it’s too early to say
the product is a mainstream hit, early data suggest that some early adopters are eager to try the new
form of payment & it is gaining massive popularity since its launch.
How to use Apple Pay
 In order to use Apple Pay, you need to have a compatible device and the right version of iOS.
You’ll also need to update your iPhone to iOS 8.1 or newer, which will turn on your phone’s
Apple Pay feature.
 Once your iPhone is in order, you’ll need to link up a credit or debit card to use for payments.
 After completing above steps, to use Apple Pay in a store, you need to take your phone out of
your pocket, rest a finger over the Touch ID sensor (without pressing down), and hold it over a
contactless payment terminal.
 The iPhone uses Touch ID to authenticate your fingerprint and immediately processes the
payment.
A major concern for Apple is security, especially since Apple Pay was introduced in the wake of an iCloud
hacking incident in September 2014 that led to hundreds of private celebrity photos leaked online.
Apple has been ramping its efforts to ensure users that their data will be secure with Apple Pay, even
publishing additional pages on its website to educate customers about keeping their devices safe &
secure.
Apple Pay Security
Apple Pay, since its inception has been one of the keen interests for the Apple users, i.e., their
customers who are very much enthralled by this digital payment wallet. Since Apple has been known to
deliver excellent products & services, thus, Apple Pay has obviously captivated its customers with this
new technology.
Apple Pay has the ability to work on iPhone 6, the Apple Watch, etc., to facilitate in-store payments via
NFC, the Near Field Communication. It works at any merchant who is NFC-enabled at the POS, Point-of-
Sale.
For making payments, the customer simply needs to tap their iPhones against the contactless reader at
the checkout. Further, they just have to authenticate the transaction with Touch ID which is a super
secure technique that uses fingerprints of the users for authorization. What else can one ask for?
Inclusion of fingerprints for verification is a top-notch way to secure the user’s identity.
The authentication further signals to the phone device that it can transmit the DAN, Device Account
Number, which is, a token issued by the card network & also, its accompanying “transaction specific
dynamic security code” to the respective merchant’s terminal. Now, the transaction proceeds just the
same way as any normal credit card transaction would’ve proceeded. The major difference being just

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that the financial institution, the bank or the issuer verifies that the customer’s payment info is
generated from the correct device, or, whether it has been repeated.
The Apple Pay process setup is the exclusive time when the actual & confidential credit card info flows
between Apple & the issuer. Once this information gets to the card network, it is decrypted & the card
network issues a given token called DAN, which is the Device Account Number (DAN) which provides
utmost security.
However, during the merchant transactions, Apple Pay does not send its merchants the standard card
credentials, the CVV number, or the expiration date of the card, of its valuable customers. Instead of
that, it exclusively sends the DAN. So this number is translated into a credit card number only when it
reaches the payment network. This means that only the issuing bank & the card scheme can have the
information about the card. This feature ensures utmost security & makes sure that Apple Pay is the
most secure mode of payment, especially since it involves such a sheltered mode of transferring the
information.
Apple Pay VS Bitcoins
Gone are the days of being loaded with liquid assets in your wallets, when new age currency has come
into picture: Apple Pay & Bitcoins. Now you don’t need to be carrying the hard money in your pockets,
when this soft money will make your transactions an easy task.
Apple Pay allows all the Apple users to pay their purchases using Apple Pay from your iPhone 6, iPhone 6
plus, Apple-watch compatible devices. Where this exclusive feature can be called a blessing in disguise,
since it is only limited to be used by the Apple users across the globe, & no other users, other than the
Apple users can avail this facility.
Bitcoins, on the other hand can be availed by anyone, as & when they want to use them. You do not
even need to add your own name; you can just remain anonymous & utilize Bitcoins. This is the basic
Apple Pay vs Bitcoin

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difference between the operability of Apple Pay & Bitcoins; the exclusivity provided by Apple that is
both boon & a curse, whereas, the feature of Bitcoins of being readily available for anyone who wants to
use this digital currency.
However, this anonymity feature also puts a threat on the security of Bitcoins, as it is unknown who is
the actual user of Bitcoins; this anonymity makes a potential threat & is a breach in the security.
Someone’s identity might remain unknown, & they might cause harm to the process of Bitcoins, as there
are Bitcoins exchanges that allow people to sell or purchase various currencies, here, a hacker can hack
into the code of the digital currencies & since he would be anonymous, there won’t be any feasible way
to know who hacked into the system & caused the potential damage or, indulge in illicit activities like
buying online drugs etc.
Bitcoins came into picture long before than Apple pay, they were introduced in 2009, whereas Apple pay
was launched in 2014, a fairly newer concept, where the Apple users have shown immense interest &
eagerness in wanting to try Apple Pay.
Another feature in Apple Pay is that it generates a “dynamic security code” with each transaction that
enhances the security aspects of this virtual payment mode. On the other hand, no such feature is
included in Bitcoins, which limits the security of this digital currency.
Albeit, both Apple Pay & Bitcoins enhance the ease of access & provide simple solutions for online
transactions, but since the virtual & digital element is added with these services, hence, it is rather
unknown, whether or not these services would be the future of the currencies, but the enhanced
functionalities provided by both these services can’t be avoided, & although there are pros & cons
involved with them, but every service comes with a price to pay, ergo, these services are gaining massive
recognition because of the simple solutions to transactions provided by them.