Apple Pay is a mobile payment solution that's accepted by millions of retailers in various countries. This guide covers what you need to know to use Apple Pay.
Apple Pay is a mobile payment solution based on Near Field Communication (NFC) technology that was released alongside the iPhone 6 and iPhone 6 Plus in September 2014. The service launched with a few hundred thousand point of sale (POS) locations supporting the service, and has grown to a service that is supported by more than two million retail locations in many countries.
In this cheat sheet, you'll learn all of the details surrounding Apple Pay, including how it works and what SMBs and enterprises need to know. We'll continue to update this guide with new information about Apple Pay. This article is also available as a download, Apple Pay: An insider's guide (free PDF).
SEE: Mobile device computing policy (TechRepublic Premium)
What is Apple Pay?
Apple Pay is the mobile payment solution from Apple that lets you easily pay for purchases online in supported apps and at retail locations using credit and debit cards stored securely on your iPhone in the Wallet app. With the introduction of a feature in iOS 11, Apple Pay also allows person-to-person payments within iMessage.
Why does Apple Pay matter?
Apple Pay is the first of the new mobile payment solutions that utilize NFC to wirelessly and securely transmit your payment information to the POS and online through mobile apps, all while maintaining your privacy by not transmitting information such as name, phone number, and address, which can be stored on older magnetic stripe credit and debit cards.
When is Apple Pay available?
The first version of Apple Pay was available for compatible device users on October 20, 2014 with the release of iOS 8.1 on iPad and iPhone.
Who does Apple Pay affect?
iOS 8 rolled out support for Apple Pay in Passbook. In iOS 9, Passbook was renamed Wallet to offer a clearer picture of the app's capabilities. Businesses that adopt Apple Pay may see numerous advantages to using the system, including satisfied customers, security protection, and lower costs for credit cards.
Users with the following devices have the ability to use Apple Pay. With iOS 10, Apple added the ability for online payments as well using the Safari web browser. Users can easily pay for items using websites that support the Apple Pay payment platform. Users with the following devices have the ability to use Apple Pay:
- iPhone 6 / 6 Plus (in-app and in-store)
- iPhone 6s / 6s Plus (in-app and in-store)
- iPhone 7 / 7 Plus (in app and in-store)
- iPhone 8 / 8 Plus (in app and in-store)
- iPhone X (in app and in-store)
- iPhone Xr (in app and in-store)
- iPhone Xs / Xs Max (in app and in-store)
- iPad Air 2 (in-app only)
- iPad Pro (all models, in-app only)
- iPad mini 3 (in-app only)
- iPad mini 4 (in-app only)
- iPad 2018 forward (all models, in-app only)
- Apple Watch (all series, all models, in-store only)
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- iPad Pro 2018: Cheat sheet (TechRepublic)
Where does Apple Pay work?
Apple Pay requires support from your card issuer and is currently available in the following countries.
- Hong Kong
- New Zealand
- Isle of Man
- San Marino
- United Kingdom
- Vatican City
- Latin America and the Caribbean
- Middle East
- United Arab Emirates
- North America
- United States
How can I get Apple Pay?
If you choose to do a manual upgrade, iOS 8.1 or later can be downloaded over the air (OTA) by opening Settings | General | Software Update on your iOS device. You can also update by connecting your device to iTunes and selecting Update. Managed devices can be updated through the Apple Configurator app on OS X.
How does Apple Pay work?
Apple Pay requires a participating card issuer in order to work. Before trying to register cards with Apple Pay, you must first verify the issuer of your debit or credit card supports Apple Pay. You can see a full list of participating banks in Canada, Latin America, and the US. This requirement is in place because, whenever a new card is registered, the Wallet app must reach out to the card issuer via the network and request a digital payment card number that is specific to your device.
This device-specific number and payment token is stored on your device securely and protected with multiple layers of security (which I cover in the next section).
Whenever you use your device to make a payment, you must authenticate it with your fingerprint using Touch ID. To do so, follow these steps.
- Hold your finger on the Touch ID sensor with your iPhone locked.
- Hold your iPhone with your finger still on the Touch ID sensor up to the NFC reader at the retailer where you wish to make a payment.
- Your iPhone will illuminate and display the default card registered in the Wallet app (Figure A), and since your finger is on the Touch ID sensor, it will automatically send the payment information to the POS terminal.
Note: For devices with Face ID, you'll double-tap the Side/Siri button to bring up the Apple Pay cards, then authenticate with your face and bring the device close to the NFC terminal to pay with Apple Pay.
You can register more than one credit or debit card with Apple Pay; however, the default card will immediately display when paying for purchases. To switch cards, double tap the iPhone home button on the Lockscreen, select a card, then authenticate with Touch ID. Tap the iPhone to the NFC reader to make the payment.
When the device payment information is requested, Apple will use the stored payment token to generate a unique security code for the transaction, making the payment information very secure in that it can only be used for that one transaction. This means that if the retailer experienced a theft or data breach during which credit card numbers were stolen, your Apple Pay credit card number would not be at risk since it was only good for that single transaction.
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How does Apple Pay secure payment information?
Whenever a new card is registered, the registered digital payment card number is stored securely in a new chip on the compatible iPhone, iPad, and Apple Watch models. This chip, called the Secure Element, is designed to keep the numbers stored securely behind your fingerprint data and encrypted to prevent hackers from gaining physical access. In addition, Apple offers a new tool in the Find My iPhone section of iCloud that allows you to easily unregister your Apple Pay cards remotely and disable the feature on the device.
For an in-depth guide on how Apple Pay secures your payment information, check out the Apple Pay security and privacy overview on Apple's website.
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How do I register Apple Pay cards?
Registering new cards is an easy process that can be completed on any compatible iOS device running the latest version of the mobile operating system. To register a new Apple Pay card, grab one of your credit cards and follow these simple steps.
- On your iPhone, open the Wallet app. On your iPad, go to Settings | Wallet & Apple Pay.
- Tap Add Credit or Debit Card.
- If you have a supported credit or debit card on file with iTunes, enter the card's security code; otherwise, use the camera to capture the information on the credit, debit, or retail store credit card, and then fill in any additional required information.
- Tap Next. Your bank will verify the information and decide if you can add your card to Apple Pay. If more information or verification of information is required, you'll be asked to perform that step next.
Once added, you can verify your card any time after adding it, just return to Settings | Wallet & Apple Pay on your iPad or iPhone, and then follow the verification steps. After your card is verified, you can start using it on Apple Pay in compatible apps and in-store.
- Apple Pay troubleshooting tips and tricks (TechRepublic)
- Set up and use Apple Pay on your iPhone or iPad (Apple)
- Set up and use Apple Pay with your Apple Watch (Apple)
What does Apple Pay mean for SMBs?
For small or medium size businesses that want to be on the cutting edge and adopt Apple Pay, there are a lot of advantages to doing so.
One advantage it that the barrier to entry is extremely low, especially if you already use readily available POS systems like Square; or, you can order compatible card readers from your existing credit card processor. If you've already upgraded your business' credit card readers to NFC-style readers that also accept chip cards, chances are, you meet the requirement and just need to talk with your credit card processing company to have the NFC payments feature enabled on the reader. The great thing about NFC is that it works on all major phones and not just ones that work with Apple Pay--this includes Android and Samsung Pay.
Once you begin accepting Apple Pay, Apple offers resources to help you market this opportunity. First, you can specify that you accept Apple Pay inside of the Maps Connect portal (i.e., the portal used to get your business listing inside of Apple Maps); second, you can apply to get a free Apple Pay sticker set from Apple to advertise that you accept the service in your location.
- Apple Maps Connect Business Listings (Apple)
- http://mapsconnect.apple.com/Order Apple Pay Supplies (Apple)
- Apple Pay merchant information (Apple)
- 6 essential mobile payments apps small businesses need to know (TechRepublic)
- Should your business adopt mobile payments? (TechRepublic)
What does Apple Pay mean for enterprises?
Larger organizations that use Apple Pay benefit from the same niceties as small and medium businesses that accept Apple Pay, and there are even more opportunities for business that do online transactions; this is because Apple Pay also works in apps to allow for easy purchases through your existing credit card processor.
If your business has a brick-and-mortar location or locations, you can market your app through the same means as SMBs. Apple provides a special listing inside of the App Store for larger apps that accept Apple Pay.
Not only are apps that accept Apple Pay great for users, they can also be great for the company, because you don't have to store and process traditional credit card numbers that, if theft happens, will result in damages. With Apple Pay, because the pin is re-generated with every use, the number is secure when stored on your servers, providing lower damages if a system breach were to occur.
In the US, the following credit card providers can work directly with Apple Pay.
- Bank of America Merchant Services
- Chase Paymentech
- First Data
- FIS ClearCommerce
- Global Payments
Other countries that support local payment processors can be found on the Apple Pay Developer website.
In addition to accepting Apple Pay in apps, website owners can also accept Apple Pay through their e-commerce websites. You can either do this yourself, or use one of the many e-commerce platforms available that support Apple Pay. Apple has partnered with the following e-commerce platforms to allow for Apple Pay support for client purchases:
- Apple Pay for developers (Apple)
- Getting Started with Apple Pay (Apple)
- Card issuers wanting to work with Apple Pay can email firstname.lastname@example.org
- Apple Pay to become payment method on eBay (CNET)
- Apple Pay now accepted at US Costcos (CNET)
- Apple Pay, Google Pay support arrives at 7-Eleven stores (CNET)
The initial release of Apple Pay was in iOS 8.1 on October 20, 2014.
The version of Apple Pay in iOS 9.0 was released on September 16, 2015. The Passbook app's name was changed to Wallet in favor of additional functionality coming in the future
This version of Apple Pay in iOS 10.0 was released on September 13, 2016 via an update to iOS version 10.0. It added support for Apple Pay in Safari both locally on the device through mobile Safari and integration using secure Handoff to pay for items through Safari for Mac.
Scheduled to be released in Fall 2017, this version of iOS adds person-to-person payments via Apple Pay. See the "Apple Pay Person-to-Person and Apple Pay Cash" section below for more information.
Introduced in September 2018, this version added the ability to use Apple Wallet and Apple Pay to authenticate with a select group of launch universities for using your device to pay for student dining plans and storing the student ID. Apple also unlocked the NFC chip for use in third party apps authentication, external hardware features, and other uses.
Released after Apple's March 2019 event, iOS 12.2 adds more information, including location information in the history of Apple Pay transactions. This update also renamed Apple Pay Cash Card to Apple Cash.
macOS 10.12 and later
This feature works through the Handoff features on your Mac, Apple Watch, and iPhone. When you visit a website that accepts Apple Pay payments and choose to check out with Apple Pay, a dialog will appear allowing you to select which card you wish to use from a nearby iOS or watchOS device. On the screen of the Apple Watch or iPhone, you will see a confirmation of the payment, and a requirement to process the payment (on Apple Watch, it's double-pressing the side button; on the iPhone, it's authenticating with Touch ID). Once you do this, the payment is processed just like with in-app purchases.
If you own a MacBook with Touch ID, you have the ability to use Apple Pay directly on the Mac without needing any nearby Apple Watch or iPhone. If your Mac has this ability, go to System Preferences | Wallet & Apple Pay to set up your payment cards.
- About Apple Pay for merchants in Australia, Canada, and the US (Apple)
- Where to use Apple Pay (Apple)
- Like Walmart, Target thinks we need more mobile payment apps; they're both wrong (ZDNet)
- Google launches 'Hands Free' mobile payment experiment for Android and iPhone (TechRepublic)
What is Apple Pay person-to-person and Apple Pay Cash?
At WWDC 2017, Apple announced that iOS 11 will support person-to-person payments using Apple Pay and iMessage. This is a new iMessage app available to Apple Pay users, giving you the ability to send money using your credit or debit cards to someone directly through the Messages interface.
When someone receives money, it's deposited into your Apple Pay Cash card. Think of this as a prepaid credit card--when you receive money the cash is placed on this card and is available for spending through Apple Pay (in apps, online, or in stores), sending through iMessage to someone else, or depositing into your bank account.
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- My first (belated) payment with Apple Pay: Wow, this really does change everything (ZDNet)
- WWDC 2017: All the news about iOS 11 (TechRepublic)
What are competitors to Apple Pay?
While iOS doesn't have the ability for other payment providers to utilize wireless payments, there are competitors to Apple Pay. Apps like Walmart Pay, McDonalds gift cards, Starbucks cards, and other store cards that allow you to pay using QR codes or barcodes at checkout are competitors, albeit, in a smaller market.
On other devices, direct competitors include Samsung Pay and Google Pay, which are both NFC contactless payment systems.
With the upcoming person-to-person payment system with Apple Pay, the competitors include Square Cash, PayPal, and other similar services.
- Apple Pay vs. Samsung Pay vs. Google Pay: Which mobile payment system is best? (CNET)
- Apple Pay dominates mobile payments, and it could change retail forever (TechRepublic)
- Android Pay, PayPal aim to make paying with your phone easier (CNET)
- Online shoppers are liking these speedy checkout options (CNET)
- PayPal inks partnership with Android Pay for in-store payments push (ZDNet)
- Windows Phones are finally (!) getting mobile payments (CNET)
- Top 5: Reasons cash will die (TechRepublic)
What is Apple Card?
Apple introduced on March 25, 2019 Apple Card, a new feature of Apple Wallet and Apple Pay. Apple Card is a credit card offered by the company through a partnership with Goldman Sachs as the issuing bank and Mastercard as the card processor. According to Apple, the credit card represents all of its core values: Simplicity, transparency, and privacy.
Apple Card is different in a variety of ways, including you can apply for the card right inside of the Wallet app; once you're approved, you can start making purchases immediately.
Apple Card's Daily Cash feature gives you cash back daily based on your purchases. The card gives 3% cash back on all Apple purchases (Apple Store, iTunes, App Store, and more), 2% back on all other purchases made using Apple Pay, and 1% back if you need to use the physical card that Apple supplies. When you earn cash back, it's automatically added to your Apple Pay Cash card, which you can transfer to your bank balance or spend at any Apple Pay-compatible merchant.
Apple has designed a physical card made out of titanium that features your name on it, the Apple and Mastercard logos, and not much else. The card doesn't feature an actual card or CVV number--instead, this information can be found in your Wallet app if you need to make a purchase using your card number online. You can use Apple Card at brick-and-mortar stores using the physical Apple Card.
Through the Wallet app, Apple Card transactions are matched with the merchant through AI. Apple also shows your spending activity in an easy-to-read graph that allows you to immediately calculate your payments and remaining balance (Figure B).
If you have any issues with transactions or with your account, you can speak to an agent through iMessage immediately. This is unique in the banking industry, which typically only offers chat services for high-level features and not account inquiries.
Something that has been a huge saving grace of the credit card industry in recent years is the 24/7 monitoring for fraud protection. Apple Card one-ups this and makes it even easier through push notifications that will alert you in real time of suspicious transactions and ask if you made the purchase.
Apple Card also has some perks that many credit card providers offer, including:
- No annual fees
- No cash‑advance fees
- No international fees
- No over‑the‑limit or returned‑payment fees
- No hidden fees
- No late fees or penalty fees
Regarding interest rates, this information is on the Apple Card site: "Variable APRs range from 13.24% to 24.24% based on creditworthiness. Rates as of March 2019."
Apple Card will be available starting this summer, but you can sign up on the Apple Card website to be the first to know when it launches or to get additional information about it.
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