Dubbed “Apple Pay,” the feature uses NFC that’s built into the iPhone 6 and iPhone 6 Plus. It also utilizes a secure element chip and the iPhone's Touch ID fingerprint sensor to keep your information encrypted and secure. A user’s credit cards are store in the Passbook app.
When you want to make a payment using Apple Pay, your device will use a dynamic security code and one-time account number so that your real credit card info is safe. You authenticate the purchase with Touch ID and tap it to a payment terminal at participating retailers.
Speaking of participating retailers, Apple says that more than 220,000 US merchants have committed to supporting Apple Pay. Those include Macy’s, Bloomingdales, Walgreens, Duane Reade, Staples, Subway, McDonald’s and Whole Foods. The credit card companies that will be on board with Apple Pay out of the gate are American Express, MasterCard and Visa.
Apple says that you’ll be able to use Apple Pay to make online payments as well. Support for the payment platform will be built into apps like Target, Groupon, Uber, Open Table and Apple’s own app, allowing you to easily buy goodies online.
Apple Pay will launch in the US initially and will only be available on the iPhone 6 and iPhone 6 Plus.