3 Need-to-Know Questions & Answers About Apple Pay
Apple Pay. Have you heard about it and wondered what it’s all about?
As a community bank dedicated to offering our customers secure and convenient ways of managing their money, we constantly keep an eye on emerging banking and financial technology. Apple Pay, Apple’s breakthrough into mobile payments, has been a hot topic since being introduced in September of 2014.
Lincoln Savings Bank is not a participant in Apple Pay, but for the benefit of those that may not be familiar with the technology, we would like to touch briefly on this with three simple, but important, questions.
What is Apple Pay?
Put simply, Apple Pay allows you to make faster and simpler purchases using an iPhone 6, iPhone 6 Plus, Apple Watch or iPad. By loading debit card and credit card information onto these devices, you can make checking out in-store or within apps much faster.
How does Apple Pay work?
Using the Passbook app, you add your debit and/or credit card information onto your Apple device. You can add the card used for your iTunes account as well as other cards if you choose. When you go to make a payment in stores, you simply hold the phone or tablet to the reader with your finger on the Touch ID button, and your payment is made.
Is Apple Pay secure?
Apple has gone to great lengths to secure your card data. For starters, when you load debit or credit card information onto your device, it is assigned an encrypted Device Account Number. Your card information is never stored within Passbook or on Apple’s servers.
When you make a purchase, the Device Account Number is what is used, not your card number. This means your card data isn’t held on a business’s servers. This is a major bonus, as more and more businesses have come under attack from criminals and data breaches.
In addition, other security benefits include:
Payments only work if you use the Touch ID feature on your phone, which requires your unique fingerprint
Using Apple Pay means you don’t have to worry about carrying around your cards or pulling them out to make a payment.
Right now, Apple Pay works with debit and credit cards issued from VISA®, MasterCard® and American Express®, with Discover soon to be joining. The list of banks that currently offer Apple Pay is limited, but more banks are being added regularly. Also, the store must have the ability accept contactless payments, and those stores are still fairly limited but growing.
While Apple isn’t the first to offer mobile payments, Apple Pay has certainly been successful with brining awareness to the mobile payment and mobile wallet concept. The mobile payments industry is changing fast, so consumers can expect a lot more to come in the months and years ahead.
Lincoln Savings Bank likes to keep an eye on the newest financial technology, both to strengthen our products and services and for the benefits of our customers. We will keep you updated on any news relating to Apple Pay and other innovative financial products as they arise.
Lincoln Savings Bank, Member FDIC