Apple Pay: The Evolution of Contactless Payments


Apple Pay is a mobile payment service developed by Apple Inc. It allows users to make secure payments in person, within iOS apps, and online. Apple Pay is compatible with various Apple devices, including iPhone, Apple Watch, iPad, and Mac. It works by scanning credit or debit cards and can replace traditional chip and PIN transactions at contactless payment terminals. It works with any merchant that accepts contactless payments, eliminating the need for dedicated Apple Pay terminals. Two-factor authentication is provided through Touch ID, Face ID, PIN, or password. Communication between devices and POS systems occurs wirelessly using Near Field Communication (NFC). Payment data is securely stored in an embedded element and encrypted using cryptographic functions. Additionally, Apple Pay can be used for public transportation payments with either credit/debit cards or dedicated travel cards in select cities around the world.

Table of Contents

History of Apple Pay :

Apple Pay is a digital wallet and mobile payment service introduced by Apple Inc. on October 20, 2014. It was designed to enable iPhone, iPad, and Apple Watch users to make secure and convenient payments using their devices. Apple Pay uses Near Field Communication (NFC) technology to allow users to make contactless payments at compatible payment terminals.

The idea for Apple Pay originated from Apple’s desire to provide a seamless and secure payment experience for its users. The company recognized the potential of integrating mobile payments into its ecosystem, taking advantage of the widespread adoption of iPhones and other Apple devices. To make Apple Pay a reality, Apple worked with major financial institutions, credit card companies, and retailers to build partnerships and ensure broad acceptance.

Upon its release, Apple Pay supported major credit and debit cards from various banks, along with integration with major payment networks like Visa, Mastercard, and American Express. Over time, the service expanded globally and added additional features, including loyalty program integration, transit card support, and person-to-person payments via iMessage.

Apple Pay’s security measures played a big role in its success. The service takes advantage of device-specific tokens and biometric authentication (such as Touch ID or Face ID) to ensure secure transactions. User card details are not stored on Apple’s servers or shared with merchants, adding an extra layer of protection.

Since its introduction, Apple Pay has grown in popularity and has become one of the leading mobile payment platforms around the world. Its expansion into new markets and continuous improvements have cemented its position as a leading player in the digital payments industry.

How to use Apple Pay :

To use Apple Pay, you’ll need a compatible Apple device, such as an iPhone, iPad, or Apple Watch. Here’s a step-by-step guide on how to set up and use Apple Pay:

  1. Check compatibility: Ensure that your Apple device supports Apple Pay. It should be an iPhone 6 or later model, an iPad Pro, iPad Air 2, or iPad Mini 3 or later model, or an Apple Watch paired with an iPhone.
  2. Set up Apple Pay: Open the Wallet app on your device. If you’re using an iPhone, this app is pre-installed. If you’re using an iPad, you might need to download it from the App Store. Follow the on-screen instructions to add your credit or debit card to Apple Pay.
    • If your card is already linked to your Apple ID, you can choose to use that card or add a new one.
    • To manually add a card, tap the plus (+) sign in the upper-right corner of the Wallet app and follow the prompts to enter your card information. You can also use the device’s camera to capture the card details.
  3. Verify your card: Depending on your bank or card issuer, you might need to verify your card for security purposes. This can typically be done through a verification code sent via SMS, email, or by calling your bank.
  4. Set a default card: If you added multiple cards, you can set a default card for convenience. Open the Wallet app, tap on your desired card, and then select “Set as Default Card.”
  5. Make a payment in-store: When you’re ready to use Apple Pay for an in-store purchase:
    • Ensure your iPhone or Apple Watch is unlocked and near the payment terminal.
    • For iPhones, double-click the side button (or home button for older models) and authenticate with Face ID, Touch ID, or your passcode.
    • For Apple Watch, double-click the side button and hold it near the payment terminal.
  6. Make a payment within apps or online: If you’re making a purchase within supported apps or websites:
    • Look for the Apple Pay button at checkout or select Apple Pay as the payment method.
    • Authenticate your purchase using Face ID, Touch ID, or your device passcode.

Apple Pay provides a secure way to make payments without sharing your actual credit or debit card information with the merchant. It uses tokenization and biometric authentication to ensure your payment details are protected.

Remember, the availability of Apple Pay may vary depending on your country and the specific financial institutions you use.

Apple Pay Service :

Apple Pay is a mobile payment service that is compatible with various Apple devices, including iPhone 6 and later, iPad Air 2 and later, Mac with Touch ID, and Apple Watch Series 1 and later. It uses the EMV payment tokenization specification to ensure secure transactions. By replacing customer card details with a tokenized Primary Device Account Number (DPAN), Apple Pay keeps payment information private from retailers. Each transaction generates a dynamic security code for added security. Users can remotely suspend service if they lose their device.

To make payments, users authenticate using Touch ID, Face ID, or a passcode on iPhones, or by double-clicking the button on an unlocked Apple Watch. In iOS apps, Apple Pay is selected as the payment method and authenticated by Touch ID or Face ID. Payment cards can be added through iTunes accounts, by entering card details, within the card issuer’s app, or by manually entering the information.

While users receive immediate transaction notifications, Apple Pay does not support instant fund transfers, as settlement times depend on the chosen payment method. In the UK, Apple Pay supports payments of any amount due to enhanced security, while traditional contactless payments are capped. Apple assumes responsibility for fraudulent use and banks negotiate transaction fees with Apple.

Apple Pay’s Consumer Device Cardholder Verification (CDCVM) method enables verification using Touch ID, Face ID, or passcode, eliminating the need for a signature or PIN entry. Acceptance of Apple Pay may vary between countries due to differences in provisioning and terminal compatibility.

Apple Cash, formerly Apple Pay Cash, allows money transfers between users through iMessage. Funds received are deposited to the recipient’s Apple Cash card for immediate use or can be transferred to a bank account via ACH transfer. Apple Cash is available only in the United States and is more widely accepted with Apple Cash device account numbers issued on the Visa payment network.

Apple Pay Cost :

Apple Pay itself is a free service provided by Apple for users of its devices, such as iPhone, iPad, Apple Watch, and Mac. Apple Pay allows users to make secure payments in stores, online, and in apps using their Apple devices.

However, it’s important to note that some financial institutions or card issuers may have fees associated with using their cards with Apple Pay. These fees are generally related to the card itself and are not specific to Apple Pay. For example, certain credit cards may have an annual fee or transaction fees, regardless of whether they are used with Apple Pay or any other payment method.

For accurate information on fees associated with the use of Apple Pay, it’s best to check with your financial institution or card issuer. They can provide specific details about any charges or fees that may apply to your particular card or account.


Please enter your comment!
Please enter your name here