Apple reportedly teaming up with Amex, Visa, and MasterCard on iPhone 6 payments system

[Himanshu Arora]

According to latest rumors, Apple has partnerered with major payment networks including American Express, Visa, and MasterCard to implement a new digital wallet payment system that will allow iPhone 6 owners to use their mobile phones for payments at brick-and-mortar stores.

The company is expected to officially unveil the new payments system alongside the iPhone 6 at its well anticipated press event, which is to be held at the Flint Center for the Performing Arts in Apple's home city of Cupertino, California, the same venue where the Macintosh PC was originally unveiled in 1984.

The new system would use Apple's Touch ID feature in conjunction with the near-field communication (NFC) technology, a short-distance wireless technology that enables mobile payments with a tap, to authenticate purchases.

For Apple, introducing its own iPhone-based payments product seems logical, as the company already holds credit card data for about 800 million iTunes account holders. The move would not only keep users within the company's ecosystem (which is very Apple-like), but would also help the company generate more revenue.

However, the iPhone maker likely needs approval from competent authorities (the credit card network or the bank that issued a card) before these cards could be used for mobile payments. Also, getting individual merchants to support the technology would be another hurdle for the company to overcome to get its new offering off the ground.

Rival Google is already offering a similar service through Google Wallet, which the company launched back in 2011. In addition, other companies like Isis have also been offering NFC payments.

Also read: Everything you need to know about NFC technology

Permalink to story.

https://www.techspot.com/news/57908-apple-reportedly-teaming-up-with-amex-visa-and-mastercard-on-iphone-6-payments-system.html

 

[VitalyT]

This must be a good news for online criminals, Apple throws in a big bone for them, huge potential for yet another mass theft.

 

[yukka]

Scared for my phone to become my wallet. Pay with phone in a dodgy bar and before you know it, robbed in the toilet!

 

[Guest]

For the people who think that their credit card data will be less secure with systems like this, let me clarify a few things for you.

There's something called PCI standards. These are standards that POS softwares, retailers, merchants and banks all have to follow to process credit cards. They're a series of mainly network related rules that say what POS computers can and can't do. There's rules about not storing credit card track data, there's rules about having computers in locked rooms with camera systems. etc. etc.

For what it's worth, the PCI rules are pretty good and if a store follows all PCI rules to the T, you can feel pretty good that your credit card data is safe. One thing that most people don't understand is however that PCI is a grandfathered set of rules. So if you install your system in 2010, and in 2010 your system is up to date with the PCI standards, then your system is good to go. You are PCI compliant from that point forward. You are grandfathered into PCI compliance for the future unless you make a change to your POS system, or your credit card terminals.

So where I'm going with this is that let's say that a retailer / bar / restaurant wants to start taking iphone payments through their POS system, well they're going to probably have to do some updates. Guaranteed they'll have to update their software version to the latest version, and with that any number of other parts of the system will require updates as well. Then if you start upgrading your system, now your're responsible for all the new PCI rules that went into effect since the store first had the system installed. Maybe a firewall will be installed, maybe the whole system will be overhauled.

My point being that, while you may have some reservations about NFC's inherent weaknesses, NFC payment systems will push the industry forward in other ways that make everything safer everywhere else. NFC is already available but it's not wide spread yet. Apple will help push the market in this regard. Also, chip and pin is coming down the pipes, and this is another huge leap forward in credit card safety.

For all the people that are worried about security, things are trending towards SAFER transactions not less secure transactions I assure you of this.

 

[Guest]

For the people who think that their credit card data will be less secure with systems like this, let me clarify a few things for you.

Don't bother.
This is an article about Apple. That means it will be hated and criticized beyond logic because that is the culture in this website, regardless of its content or implications. For example, everything Apple does is unsecure, regardless of how demonstrably secure it may be.
Also part of the culture on this place is the idea that because people like you and me don't have an username, nothing we say can possibly make sense. That is because guest comments have "no identity" therefore the content of our comments does not matter, unlike the ones made by users with an internet username that doesn't make the user any less anonymous than guest accounts. It's an excellent idea.

 

[VitalyT]

because people like you and me don't have an username, nothing we say can possibly make sense. That is because guest comments have "no identity" therefore the content of our comments does not matter

Thanks for clarifying.

 

[Skidmarksdeluxe]

For the people who think that their credit card data will be less secure with systems like this, let me clarify a few things for you.

Don't bother.
This is an article about Apple. That means it will be hated and criticized beyond logic because that is the culture in this website, regardless of its content or implications. For example, everything Apple does is unsecure, regardless of how demonstrably secure it may be.
Also part of the culture on this place is the idea that because people like you and me don't have an username, nothing we say can possibly make sense. That is because guest comments have "no identity" therefore the content of our comments does not matter, unlike the ones made by users with an internet username that doesn't make the user any less anonymous than guest accounts. It's an excellent idea.

C'mon that's not true. We have 1 or 2 iFans here... OK, 3 tops but you're welcome here and your comments do count because we need something to flame.

 

[Skidmarksdeluxe]

For the people who think that their credit card data will be less secure with systems like this, let me clarify a few things for you.

There's something called PCI standards. These are standards that POS softwares, retailers, merchants and banks all have to follow to process credit cards. They're a series of mainly network related rules that say what POS computers can and can't do. There's rules about not storing credit card track data, there's rules about having computers in locked rooms with camera systems. etc. etc.

For what it's worth, the PCI rules are pretty good and if a store follows all PCI rules to the T, you can feel pretty good that your credit card data is safe. One thing that most people don't understand is however that PCI is a grandfathered set of rules. So if you install your system in 2010, and in 2010 your system is up to date with the PCI standards, then your system is good to go. You are PCI compliant from that point forward. You are grandfathered into PCI compliance for the future unless you make a change to your POS system, or your credit card terminals.

So where I'm going with this is that let's say that a retailer / bar / restaurant wants to start taking iphone payments through their POS system, well they're going to probably have to do some updates. Guaranteed they'll have to update their software version to the latest version, and with that any number of other parts of the system will require updates as well. Then if you start upgrading your system, now your're responsible for all the new PCI rules that went into effect since the store first had the system installed. Maybe a firewall will be installed, maybe the whole system will be overhauled.

My point being that, while you may have some reservations about NFC's inherent weaknesses, NFC payment systems will push the industry forward in other ways that make everything safer everywhere else. NFC is already available but it's not wide spread yet. Apple will help push the market in this regard. Also, chip and pin is coming down the pipes, and this is another huge leap forward in credit card safety.

For all the people that are worried about security, things are trending towards SAFER transactions not less secure transactions I assure you of this.

Thanks for the info but I think I'll stick to the old method of payment for a while yet.

 

[davislane1]

Also part of the culture on this place is the idea that because people like you and me don't have an username, nothing we say can possibly make sense. That is because guest comments have "no identity" therefore the content of our comments does not matter, unlike the ones made by users with an internet username that doesn't make the user any less anonymous than guest accounts. It's an excellent idea.

Actually, genius, guest/anonymous comments are quite commonly shunned on smaller blogs and forums for the simple fact that, in the absence of a name, posting as a guest makes it more difficult to follow conversations and, more importantly, to properly attribute comments to authors.

For example, this paragraph about why TechSpot regulars dislike guest comments betrays your rather conspicuous intellectual ineptitude. Unfortunately, since you've posted as a guest, nobody can accurately attribute this quality to your comments. We have to treat every future comment by you as a fresh exercise in dim banality, instead of forgiving your unfortunate genetic handicap. By posting as a guest, you force us to be cruel, you see.

The first guest actually gave a worthwhile response. You, on the other hand, have quite aptly demonstrated why there should be an IQ requirement for Internet access.

 

[benken2202001]

Interesting about apple security with the recent icloud hacks

 

[Jad Chaar]

This must be a good news for online criminals, Apple throws in a big bone for them, huge potential for yet another mass theft.

Yeah I don't trust having my phone as a wallet just yet. They need improved security before they will win me over.

 

[Gaara]

This must be a good news for online criminals, Apple throws in a big bone for them, huge potential for yet another mass theft.

I agree with you 100%