What is Apple Pay and How does it Work?
Apple Pay refers to the digital wallet allowing one to pay by moving iPhone for the goods purchased over a contactless reader. Apple Pay favors contactless payments through gadgets and other smartphones. There is no need to enter a pin or use a physical card.
People using iPhone6 plus, iPhone 6, or Apple Watch associated with iPhone 5 may use Apple Pay. It is identical to mobile payments working on smartwatches Android-based or Android devices. Using the Apple Pay app facilitates paying bills and works as an alternative to debit and credit cards. This mobile payment system allows users to pay for services and products in person through apps or online.
How does it work?
The Apple wallet allows you to store the credit and debit cards in the app and allow easy access. Adding card details on your device to the Apple Wallet assists in making the required payment. It requires entering the phone passcode or using Touch ID so that the device wakes up. The need is to hold near the card reader for it to confirm acceptance.
People wishing to know how to pay with apple pay will find out it is a simple contactless payment system. There is no limit on the money you spend with Apple Pay. It is quicker, and the process is the same as using your card. You can choose to pay using the card each time by going into the wallet. If not, for convenience, preset a card for the payment so that the payment becomes easier. Using an Apple device to pay is acceptable as it goes through Near Field Communication (NFC technology) as a payment processor. It allows the devices to communicate over electromagnetic radio fields. However, the two devices such as the card machine and the phone communicate conveniently when close to each other.
A digital wallet app is Apple Pay, and by adding the card details on the Apple device to the Apple Wallet app, you can make card transactions. Apple Pay and Apple Wallet work on entering a passcode or using Touch ID or Face ID. Apple Pay removes effectively the necessity to enter a PIN or carry a physical card.
Is Apple Pay Secure?
Apple Pay well known as contactless payments works on the technology of Face or Touch ID, as an additional security layer. Wrist detection on the Apple watch needs to be enabled. On adding a card, the card details and number get encrypted, thus it keeps the user details safe.
How does Apple Pay earn money?
Knowing how does Apple Pay work and earn money is important. At a POS terminal, on swiping a card,
- The first step is that the Merchant or Acquirer bank receives your credit card details and the transaction amount.
- The Merchant Bank identifies if your card is a Mastercard, Visa, AmEx, the payment network and passes the transaction and PAN details to the suitable payment network.
- The Payment Network identifies the cards Issuer Bank and passes the request of authorization to the Issuer Bank with the details of transaction amount and PAN.
- The Issuer Bank checks if the transaction amount has not crossed the credit limit and validates the PAN. If the Issuer Bank authorizes the transaction, it sends it back to the payment network.
- The payment network sends an authorization to the Merchant bank and sends back the authorization to the POS terminal. Thus, you receive an approved message transaction on the POS that prints a receipt.
The process takes hardly 2 seconds, and it completes the POS process.
How to use apple pay?
Apple Pay is installed with Apple products, and it is easy to use Apple pay or Apple Wallet on your iPad or iPhone. You can add payment cards you wish to utilize with Apple Pay. The Apple Wallet stores securely the debit and credit cards.
You may add a card by opening the Wallet app on your iPhone. And on iPad – click the settings- wallet- Apple pay. Hit the button add debit or credit card or the + sign in the right top corner. Use the camera of the iPhone to add card details and fill in additional information.
Cards already existing in connected to Apple ID may be verified easily on entering the security code. Nevertheless, new cards are verified by the bank before use. There is the possibility of adding on any Apple Device up to eight cards. On verification by your bank, one can use Apple Pay.
Using Apple Pay is possible in stores. There is no need for your phone to be connected online for some in-store payment. You may use Apple Watch or iPhone to make a payment by seeing the symbol of Contactless Payment and see Apple Pay at the checkout. To pay on Apple Watch, open iPhone on the watch app, go to ‘My watch tab- scroll’ to Apple pay & Apple Wallet. Add a card and ensure to utilize Apple Pay.
