Post on 14-Jul-2015
transcript
I’ve been using Apple Pay since November 2014
Paying with Apple Pay is faster and more
convenient than cash, checks, debit or credit
cards.
ONCE UPON A TIME:
MAGNETIC STRIPES
Most U.S. merchants still process payments using a
technology that dates back to the 1960s: a magnetic stripe on
the back of your credit card that is read by swiping it through
a point-of-sale terminal.
1 Gallon
$0.49
Game
Console
Bill
Gates
Steve
Jobs
MAGNETIC STRIPES
ARE FLAWED
They hold all of the
information needed
to produce a
flawless counterfeit
card: roughly
23 characters of
static data as the
sole authentication
mechanism for a
payment.
CHIPS SAFER? YES. SAFE? NO.
Unfortunately, chip readers
are not widely used by
merchants in the U.S. at
this time.
As a result, cards with
chips continue to include
magstripes.
If stolen, a card can be
swiped, or the information
contained on the card can
be used for “card not
present” e-commerce
transactions.
NFC TO THE RESCUE:
MOBILE WALLETS
NFC is a wireless technology that allows for
secure short-range communications and is used
to implement contactless payment systems.
Smartphones with an embedded NFC chip can
now double as your wallet. You no longer need
to swipe your card.
In 2011, Google announced Google Wallet that
takes advantage of NFC.
APPLE PAY
On October 20, 2014 Apple launched Apple
Pay, which is also based on NFC and works
on the iPhone 6 and iPhone 6 Plus.
Although the inner workings and
backends of these NFC-based
payment systems are complex, the
result is a simpler and more secure
experience. Card details are not
shared with merchants or
transmitted with payment. Hence,
your card information is less
susceptible of being compromised.
APPLE PAY:
A CLASS IN ITSELF
Apple Pay takes it a few steps further than any other payment system on the market today:
• Payments aren’t authorized without the iPhone 6 Touch ID sensor matching your exact fingerprint.
• Apple does not get involved with the purchase thanks to its tokenization system & secure element on the iPhone.
• Paying with Apple Pay takes less than two seconds. And you’ll be able to pay with Apple Watch soon.
MERCHANTS
Many merchants are benefiting from their early adoption
of Apple Pay:
• McDonald’s saw Apple Pay accounting for 50% of all of its
tap-to-pay transactions.
• Apple Pay doubled the number of mobile wallet payments
being made at Walgreens.
• Apple Pay accounted for an estimated one percent of all
Whole Foods transactions.
APPLE PAY
ECOSYSTEM
Although just launched, you can already get a glimpse of the power and reach of Apple Pay. As of November 2014:
• Apple Pay was accepted in 220,000 stores and new partners are signing up on a regular basis.
• Apple Pay is integrated with American Express, MasterCard, and Visa networks.
• Leading card issuers, including Bank of America, Chase, Citi, and Wells Fargo have signed up.
• Dozens more banks and merchants signed up in December.
• Apple Pay could be expanding to Canada as soon as March.