What is Apple Pay and How to use it in iOS Applications ?

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Apple Pay is a mobile payment service and digital wallet from Apple, Inc., which is replacing the traditional wallet. Apple pay is sometimes informally referred as iPay, which utilizes Near Field Communication (NFC) to initiate secure payment between the customer, merchant, and bank.

Supported Apple Devices

All the apple devices with Touch ID (except the iPhone 5s) support Apple Pay, but not every device can make in-store purchases. Only devices with an NFC chip can use the Apple Pay terminals at retail locations like:

  • iPhone 6, 6 Plus
  • iPhone 6S, 6S Plus
  • iPhone 7, 7 Plus
  • iPhone SE
  • iPad Air 2, iPad Pro
  • Apple Watch
  • Mac

Users with iPhone 5, 5C, 5S, 6, 6 Plus, 6S, 6S Plus, 7, 7 Plus and iPhone SE can use Apple pay through an Apple Watch, though it lacks Touch ID security. Instead, Apple Pay is activated with a passcode and will remain active for as long as the user wears the Apple Watch.
Only the iPhone 6 and 6 Plus or Apple Watch paired with an iPhone 5 or later can make in-store purchases.

Devices without an NFC chip (iPad mini 3, iPad Air 2) can only make online or in-app purchases using Apple Pay and Touch ID.

To use Apple Pay with Safari on a Mac model without built-in Touch ID, go to Settings > Wallet & Apple Pay and turn on Allow Payments on Mac

How to Use Apple Pay

Apple pay is secure, simple, and as soon as, the user added the credit or debit card details to wallet, they can start using it for their purchases. Users can add payment cards to the service in any of the three ways:

  • Through iTunes accounts,
  • By taking a photo of the card,
  • Entering the card information manually.

Apple Pay does not require specific contactless payment terminals, and can work with existing contactless terminals. It can then be used by holding the device near a contactless point of sale transaction processor when the Touch ID is verified, which prevents unauthorized use of the iPhone by others to purchase goods or services. Apple Watch users are authenticated by double clicking a button on the watch. To pay in supported iOS apps, users choose Apple Pay as their payment method and authenticate with Touch ID.

What if the user doesn’t have phone service?

Even the phone has no service, it doesn’t matter. Our payment information is stored on Apple device in the SE chip. We could even switch to Airplane Mode and still make a purchase because our iPhone doesn’t need to contact anyone — all the information is onboard.

Security and Privacy

Apple has introduced a two-factor authentication security solution for Apple Pay with limitless transaction.

  • Touch ID, which is required for each transaction.
  • A key to secure the financial information locked away – secure element.

Apple pay keeps the customer payment information private from the retailer by replacing the user’s credit card’s or debit card’s PAN with a tokenized Device Account Number (DAN), creates a dynamic security code generated for each transaction. The dynamic security code is the cryptogram in an EMV-mode transaction, and the Dynamic Card Verification Value (dCVV) in a magnetic stripe data emulation-mode transaction. When user makes a purchase, Apple Pay uses a device-specific number and unique transaction code. So card number is never stored on device or servers, as well card numbers are never shared by Apple with merchants during the transaction. All the purchases are private. Apple Pay doesn’t keep transaction information that can be tied back later and the recent purchases are kept in the wallet for convenience. Users can also remotely halt the service on a lost phone via the Find My iPhone service.

NFC chip is built-in and available only in the iPhone 6 and iPhone 6 plus, the secure element is where user’s financial information is stored. It is only accessed when a randomized 16-digit number is generated during a transaction. The data stored on the secure element never makes its way onto user’s phone’s software, so even if someone hacked or a thief dismantled user’s device’s operating system, there would be no way to extract user’s financial information and the secure element would sense tampering and would immediately shut down. In addition to NFC, this is also why previous versions of the iPhone can not be made compatible with Apple Pay without an Apple Watch.

How does Apple Pay Work?

Apple Pay uses the EMV Payment Tokenization Specification. When buying something at a store, user needs to hold their iPhone up to a wireless payment terminal near the cash register, and then use Touch ID to complete the purchase. These sensors are the same ones you’ve already seen in stores, often equipped with both card swipers and a tap-to-pay contactless terminal. Most importantly user don’t even need to wake up the device or launch wallet, device wakes up automatically when it gets in range of the terminal and initiates the payment process.
Consumer Device Cardholder Verification Method (CDCVM)

In EMV-mode transactions, Apple Pay supports the use of the Consumer Device Cardholder Verification Method (CDCVM) using fingerprint authentication, or the phone’s or watch’s passcode. The use of CDCVM allows for the device itself to provide verification for the transaction and may negate the requirement for the cardholder to sign a receipt or enter their PIN.

Global Acceptance

Apple Pay is accepted everywhere including in grocery stores, boutiques, restaurants, hotels, train, bus, music and more. We can also use Apple Pay in all kinds of apps as well on participating websites using Safari on Mac, iPhone, and iPad. And now you can use Apple Pay to make donations to the favorite nonprofit.

If you are an Apple user and keen to know more about its payment options, please reach out to us at business@altencalsoftlabs.com

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