Page 73 - Pay Magazine s2014

volume 8 • fall 2015
Apple Pay
Branches out of the orchard
Viewpoint
You’d think an A-list celebrity had shown up when Apple Pay launched in the U.K. in July. As the first market outside the U.S. to get the service, the country has been buzzing about the mobile wallet ever since. Our clients were eager for us to explain how to enlist their products in Apple Pay, with many queries about how it works and its prospects. Here’s a snapshot of what we told them.
How it Works
Apple Pay is a digital wallet that enables you to make payments at the POS as well as in-app payments on the handset. It uses an embed- ded secure element (SE) that stores encrypted card data similar to the way the EMV chip on your card holds secure data. But only issuers that have signed up with Apple Pay can access the SE.
Once issuers have an indirect licens- ing agreement with Apple via the schemes, this will allow the relevant
physical-to-virtual primary account number mapping to occur—which is at the heart of the solution—so their customers can add their payment card details to the mobile wallet. Apple Pay users then can make purchases classified as card-present transactions at stores, restaurants, Transport for London (TfL) and other locations using an iPhone 6, iPhone 6 Plus or Apple Watch. Apple Pay also works on newer iPads to buy products online, in apps and ads on Apple’s iAd platform for card-not- present transactions.
The Welcome Mat
With 2.9 million Apple Pay- compatible devices in use in
the U.K., according to research firm Kantar Worldpanel, Apple Pay has a large base of prospective users. Consumers with an Apple Watch and older handsets also can use the service.
Visa, MasterCard and American Express are on board, along with
By Suresh Vaghjiani, Global Processing Services
In Viewpoints, prepaid and emerging payment professionals share their perspectives on the industry. Paybefore endeavors to present many points of view to offer readers new insights and information. The opinions expressed in Viewpoints are not necessarily those
of Paybefore.
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