September 10th 2014
Yesterday's much-anticipated new product launch by Apple CEO Tim Cook included confirmation that the new iPhone 6 and 6 Plus will support mobile payments. The feature will use NFC (Near Field Communications) technology, which means that as a user of one of the new devices, you will be able to pay for goods and services at the till using the payment information already associated with your iTunes account. The feature will also use Apple's Touch ID fingerprint recognition technology, which was introduced on the 5S model last year. In the US, six banks as well as AmEx, Visa and MasterCard are already supporting the technology, as well as 220,000 retail locations. It is anticipated that take-up in the UK will be similarly popular.
Many people are asking, however, how safe Apple Pay will really be, not least because of last week's publication of 100 nude celebrity photos on the internet after their iCloud accounts had been compromised. This, according to Apple, was the result of persistent guessing of their login details by the hackers, but they then went on to announce additional security measures.
Apple Pay will be available in the US next month, and other markets including the UK will follow shortly afterwards. To pay at a compatible terminal in your cafe, store or other retail outlet, you will merely need to tap your phone on the terminal and place your finger on the home button for Touch ID. The built-in NFC transmitter will be located at the top of the phone, and you will be able to view all of your credit cards in the 'Passbook' app, which already includes access to tickets, aircraft boarding passes and loyalty cards. This information is stored in the device's new Secure Element chip.
You will be able to take a picure of the cards you want to add by using the phone’s iSight camera. Apple will verify the card, but will not store it on its own servers, or provide it to the store.
Each time you pay for something, you will, in effect, be using a one-time payment card. In technical terms, this will be achieved by the creation of a number unique to your phone, so that each time you pay, a unique payment number and dynamic security code are generated, not unlike many token-based access control systems currently in use. Moreover, you will also be able to use the 'Find my iPhone' feature to suspend your payment cards.
In theory, therefore, Apple Pay will be a very safe way to make payments … but criminals always seem to find way around even the best security. We also suggest that you read our information and advice page on Contactless Payments, which outlines some of the well-publicised risks of making in-person 'proximity' payments by enabled phone or card.
Remember too, that smart, new, feature-rich devices are prime targets for thieves, and iPhones are at the top of the list. The new iPhone 6s – with their ability to store payment cards and make payments – will certainly be no exception. Check out how to look after your mobile device here.
