CardConnect is Proud to Support Apple Pay

October 9, 2014

michelle

ApplePay Blog Image

The world has been a-buzz since Apple’s big announcements on 9/9. The new iPhones are a huge technological leap, while the iWatch offers one of the most personalized and connected timepieces we’ve ever seen. Apple also announced Apple Pay, a consumer wallet experience for iOS. Uber, Whole Foods, Panera, Instacart and OpenTable are already on board, with more companies expected to join soon.

Apple Pay’s development began 4 months ago in the utmost secrecy with the help of about 75 First Data Omaha employees. Now in October, it’s almost ready for release. It will allow iPhone 6 and 6 Plus users to not only use their phone as their method of payment, but also shop inside apps faster than ever before.

How does it work?

Apple Pay’s unique payment data flows through First Data from end to end, and is compatible with two technologies—Bluetooth Low Energy (BLE) and Near-Field Communications (NFC), both of which deliver different customer experiences. BLE requires customers to “check in” to the store and requires ID verification to pay, a drastic change from the usual customer experience. NFC essentially converts the customer’s phone into their payment device. It’s also less expensive, keeps the in-store experience familiar, and it is predicted that 90% of smartphone shipments will soon be NFC-compatible.

A payments game changer

Each merchant will be able to implement Apple Pay differently, and it will also make in-app shopping completely seamless. Eliminating the need to meticulously enter payment information for every purchase is good news for merchants and consumers alike. Right now, making in-app purchases takes much longer than using a browser, but with Apple Pay it will be instant. Considering that mobile is growing 3x faster than e-commerce, this gives in-app shopping the potential to absolutely skyrocket.

Not only will Apple Pay make consumers and merchants happy, but it doesn’t threaten big banks or credit card providers at all. This new technology could even benefit them. As for terminal providers, Verifone and Ingenico specifically have just invested heavily in NFC technology—a decision that Apple Pay has clearly validated.

Individualized security with Touch ID

It may seem counter-intuitive to some, but Apple Pay is actually more secure than a regular magnetic stripe card. Not only is their unique tokenization system much like CardConnect’s, but the presence of Touch ID creates an added layer of security. Touch ID is also an incredibly popular feature, with 89% of iPhone users having it enabled.

Futhermore, through Apple Pay card data is never actually stored within the phone, and Find My iPhone allows you to suspend payment remotely if your phone is lost or stolen.

A few concerns

The scrutiny Apple has faced from the iCloud leak has bled a bit into some criticism of Apple Pay, but the fact is they use completely different technology. Not only that, but the iCloud leak wasn’t a true data breach—it was a result of celebrities with insecure passwords being specifically targeted.

Another issue that has come up has been battery life. If your phone dies, how do you pay? While this is certainly a potential issue, it’s not dissimilar to problems that our current payment systems encounter. Everyone at some point has experienced a POS system failing due to a technical error, forcing customers to pay with cash for a short time. For this reason battery life is more of a potential inconvenience than a deal breaker.