Features & Opinions

Apple Pay Using (NFC) Technology to Transform Mobile Payments

Apple Pay uses near-field communication (NFC) technology to complete payments with an inventive approach. It does not require card information on the mobile device, instead a digital token is stored. The digital token resides on a secure element on the mobile device and is controlled by Apple. Even if the mobile phone is stolen, the card details are safe.

The Apple Pay system has two things going for it. It integrates Apple's Touch ID fingerprint scanner that makes the system more secure. The second benefit is that this is the first time a creator of contactless payment system is also making the actual device that runs it.

Apple has smartly been waiting in the wings to integrate NFC technology into its products. It has watched its competitors to see what has worked with NFC and what hasn't. Apple's considered approach is sort of an affirmation of NFC among high-end users. The company is telling the world that it has learned from others' mistakes and is offering a premium product that is part of a larger contactless retail system.

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