Truths and Myths About Apple Pay
Truth or myth? With rumors swirling about Apple Pay and how it actually works, it becomes increasingly difficult to separate fact from fiction. Here’s what you need to know about Apple Pay and the technology behind it.
Innovative technology continues to infiltrate and impact day-to-day life, and this is no exception for the financial sector. With applications such as Apple Pay, Samsung Pay, or Android Pay, it’s important to weigh both the benefits and the risks of digital debit and credit cards.
The technology of Apple Pay is commonly misunderstood. Essentially, when you shop at a store, you place your phone over a pad or censor. Then, the amount is reduced from your account via special chip, which is connected to your phone through a process called tokenization.
When you add your card to Apple Wallet a Device Account Number (not your card number) is created, stored, and encrypted when processing your payment. Your card numbers and other personal information are never shared with the cashier you are in contact with or the company you are shopping at.
Apple has gone to great lengths to ensure their consumers’ safety. One of the most visible measures the company has taken is the Touch ID censor and the heartbeat monitor. Any iPhone users with an iPhone 6 or higher model have access to the Touch ID censor, which allows consumers to initiate purchases by scanning their fingerprint on the home screen.
Additionally, Apple watch users have access to the heartbeat monitor device. Therefore, when consumers purchase an item through the Apple Pay technology associated with the Apple watch, they have can enable a special security feature that matches their heartbeat. Both of these measures help prevent fraud by activating a personal identification mechanism.
Many customers say that Apple Pay is simpler to use, as it eliminates all the details of the credit card. This simplicity leads to greater privacy, and it also does not incur extra fees for retailers. Both of these allow shoppers to have a more pleasurable shopping experience.
While Apple Pay offers many benefits, it is not always available, as many retailers have not made the transition yet. Although the security risks associated with technology will never disappear, it is important to be educated about the current risks of this kind of technology. Apple Pay and similar technology may not be risk-free, but as with all technology, you can’t ignore it.
For more information, check out the video above created by Apple.