Apple Pay started in the United States yesterday. Now users can tap their new iPhones onto payment terminals at some stores to pay for clothing, food, and other goods. At those stores you won’t need your credit or debit cards to pay although it’s recommended that you still carry your wallet because some of the smaller merchants might not have those terminals yet. Here are five things you need to know about Apple Pay.
- You need an iPhone 6 or 6 Plus with iOS 8.1, which was a free software update that came out Monday. The new iPad Air 2 and iPad Mini 3 will have online purchase capabilities. Nothing older than these listed will be compatible. You’ll also have to have a credit card that will work with the system like Wells Fargo, Capital One, American Express, Citibank, and Chase.
- Apple Pay is safer than a lot of the pay methods available because merchants will never actually get your credit card number; instead, they get a token that is created specifically for each transaction. This means that even if hackers get that token, they won’t be able to generate the verification code without having your phone, so those resulting transactions will be declined.
- You should be able to use Apple Pay at most stores that accept contactless payments that are based on NFC. Some major stores like McDonald’s, Whole Foods, Macy’s, and Subway are expect to be using it right away, while others like Urban Outfitters, Walt Disney Parks and Resorts and Staples will do so by the end of the year. You’ll also be able to make online purchases within apps with both the new phones as well as the new iPads.
- Apple hasn’t announced how it will make money from Apple Pay but it’s likely that credit card companies will be the ones paying fees. It’s unlikely that users will have to pay extra.
