Apple Pay Will Change the Way You Pay

This week, many people are rushing out to get Apple’s newest iPhone 6 and iPhone 6 Plus. The new phones are much larger, thinner, and faster than their predecessor, iPhone 5. But one of the biggest features of the new phone, especially as it relates to vending, is its ability to now support near-field-communication (NFC) mobile payments.

With the launch of the iPhone 6, Apple also introduced Apple Pay. A user can place his or her thumb on the Touch ID, and the NFC antenna will transmit the payment from the phone to the merchant. When you add a credit or debit card with Apple Pay, the actual card numbers are not stored on the device nor on Apple servers. Instead, a unique Device Account Number is assigned, encrypted, and securely stored in the Secure Element on your iPhone or Apple Watch. Each transaction is authorized with a one-time unique number using your Device Account Number, and instead of using the security code from the back of your card, Apple Pay creates a dynamic security code to securely validate each transaction.

NFC Mobile Payment

Dozens of large companies like McDonald’s, Walgreens, Staples, Subway, and Petco have already announced that they will begin accepting mobile payments. With 63.2 million iPhone users in the U.S. alone, according to Statista, Apple just opened up a huge customer base of potential NFC users.

Once users become accustomed to paying for everyday items at their local grocery stores, the mall and restaurants, they will come to expect the same mobile payment experience on their vending machines or micro markets. Many payment acceptors on vending machines and micro markets already have the ability to accept mobile payments using NFC, and with the introduction of Apply Pay, NFC may become the mobile payment of the future.

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