Is Apple Pay Secure? The New Apple Secure Mobile Payment System
Apple Pay new secure mobile payment system was released on October 20th. Some consumers are still worried that this new technology won’t be a safe way to pay at the stores. But, security experts say this new payment method is safer than swiping your credit or debit card at the checkout.
The new iPhone 6 and iPhone 6 Plus users can now make purchases in stores using their smartphone and the near-field communication (NFC) technology. The NFC uses a tiny antenna in the iPhone that transmits encrypted credit or debit card information to the merchants. Therefore, consumers no longer have to swipe their cards at the checkout.
Android phones apps Softcard and Google Wallet use NFC technology to make mobile payment. However, North American president of Oberthur Technologies, Martin Ferenczi, says that Apple’s mobile wallet could be more secure than Android’s options. The new Apple pay uses an EMV standard security protocol that other mobile pay wallets don’t use. In 1990 the credit card companies Visa, MasterCard and Europay developed this standard that is widely used throughout Europe and other countries.
The EMV standard credit cards have a microchip that stores the sensitive data. The chip-and-pin credit cards are more secure than magstripe credit cards that the United States uses. The EMV cards encrypt the card number and transaction details before they are transmitted to the point-of-sale terminal or merchant’s computer.
Shier explained that Apple doesn’t store customer’s credit or debit card numbers on their phones or in their servers. Instead, Apple stores a digital representation that is a 16-digit code that represents your credit card number. The token is stored within a ‘secure element” on the iPhone. The secure element microchip is in the phone and is distinct from the phone’s memory. The information stored on the microchip is backed up to your iCloud account. Therefore, if anyone hacks into your iCloud account they can’t steal your credit card information.
When using Apple Pay to make payments, the merchants receive your secure device token and a unique code that is generated for that transaction. Once you pay the information is shared with credit card companies, banks, or third-party processors that are involved in the transaction. One benefit using Apple Pay is that merchants never receive your credit card number. If the company becomes the victim of a data breach your credit card number won’t be stolen.
Ferenczi an owner of a company who is investing in EMV and NFC-enabled technologies, hopes that Apple will be the leader and transform the industry. Fernczi also commented on the new chip technology and the use of dynamic data to transmit payment information. What Fernczi likes about this technology is the fact if your data is stolen it can’t be sold or reused.