We spend $12 billion a year on credit cards, with 200 million daily credit card transactions.
So now introducing Apple Pay. This whole process is based on this little piece of plastic. It uses NFC, it’s across the top of the phone. It stores payment information encrypted and securely. It uses the Passbook app too, naturally.
You can just use the card you already have on file with iTunes. You can also take a picture of your own credit card and add it. The card numbers are not given to the merchant. It uses a one-time payment number and a “dynamic security code. If your iPhone is lost, you can suspend all payments via the Find my iPhone service.
And you won’t have to cancel your card, either, since it’s not stored on that device anyway. Apple is not in the business of collecting your data. Apple doesn’t know what you bought, where you bought it, and how much you bought it for.
The cashier doesn’t get your CC information, either. Starting in USA with Amex, MasterCard, and Visa. Also working with Citi, Bank of America, Capital One, American Express, CHASE O and Wells Fargo. That counts for 80% of the USA banks. 22,000 retailers will work with Apple Pay. Macy’s, Bloomingdales, Wallgreens, Duane Reade, Subway, McDonalds and many more. But the best thing is it will work in Apple Store and The Disney World too.
Apple Pay will also work online, but its still an untold story. Apple offers one-touch check out, you don’t have to enter your CC information, billing address, etc. it works in specific shopping apps to start, like Target.
GroupOn will also work with Apple Pay. Uber will too — you can request a car without even making an Uber account. MLB will let you buy tickets. OpenTable will let you pay right in the app in participating restaurants. Apple Pay will forever change the way all of us buy things.