Apple Pay is the new technology that Apple unveiled with launch of its iPhone 6 and iPhone 6 Plus. It has two major uses. Payment in retail stores using fingerprint sensor and payment inside applications on iPhone.
The new technology only works on iOS right now. It essentially requires TouchID sensor. On the applications supporting this technology completing a purchase can be done with a finger. Apple Store has this feature for in store purchase in iPhone 5 launch also. But it was limited to the Apple Store.
Now the technology will give one touch purchasing experience, and also keep your shipping information without botheration of filling up details. This is going to revolutionize online payment. However the market for this technology is very small at the moment. It will mostly affect the big banks and financial institutions. It will act as a disruptive technology for them. The banks have to be ready for the change that is coming.
The setup is very simple as it is connected to the Passbook which currently stores boarding pass, tickets, coupons etc. The same will store debit and credit cards also. The first card you can add is the one on your iTunes account. Just enter the card security code and it is ready. Entering information of a new card can be done manually or using iSight camera.
Does it integrate all Payment Cards?
Apple is trying hard to put this together, but at the present it does not work with all. Apple has already signed up with 500 regional banks, and 50 major world players in the banking industry. The future looks bright but now only limited options are available. Store-branded cards, prepaid cards are planned for future integration. It will take time for the technology to come of age.