Apple Pay will use tokens (aka Device Account Numbers) to stand in for credit or debit card numbers. Transactions will be verified through both one-time use security codes and Touch ID. Several banks spoke out, including Navy Federal Credit Union, and the VP of credit cards, Randy Hopper, is excited to see what Apple Pay will be able to do. According to Hopper, Apple Pay is “convenient, secure, and private” and “addresses all points of weakness across the payment system.”
The assistant VP at USAA, Vikram Parekh, said the bank is so confident in Apple Pay that the bank will assume all liability for fraudulent or unauthorized transactions in both online purchases and retail stores. PNC and Chase gave similar statements, which indicates that banks which have teamed up with Apple feel the system is secure. Several of the banks said they’d be able to tell if a transaction has taken place using either a credit card or Apple Pay because of the type of data given in the Apple Pay system.
Apple Pay will launch some time in October when iOS 8 is updated; the beta for iOS 8.1 has Apple Pay setup screens and settings which will be unlocked before it is released for public access.
