5 Questions Canadians Have About Apple Pay Answered

Apple recently made good on rumours that they would make a big move in the payment game by unveiling Apple Pay on September 9^th. Although it still remains to be seen how well the technology works, we can assume that if Apple is releasing a new piece of technology we should all pay attention to it.

Here are 5 of the most commonly asked questions about Apple Pay answered:

1. How does it work?

Short Answer: You wave your iPhone in front of a device at a cash register or payment terminal to pay for things.

Long Answer: “Apple Pay users will register a card on their smartphone and then hold the phone close to a payment terminal using near-field communication (NFC) technology to make a payment”[i] indicates an article released by the CBC.

2. Will Apple Pay be available in Canada?

Short Answer: Not yet.

Long Answer: Andrea Bellemare of the CBC reported “It’s not yet clear when (Apple Pay) might be available in Canada.” however “The Apple Pay service will be available for U.S. customers starting in October, where retailers like Nike, Whole Foods and McDonald’s have signed on.”[ii]

3. Will Apple Pay make your life easier?

Short Answer: Yes

Long Answer: Simply put, with technology like Apple Pay you won’t have to carry around cash, credit and debit cards. “Apple already has your credit card information from iTunes, so setting Apple Pay up with your first credit card is easy. To add additional cards, you can either enter the details or snap a photo (of it)”[iii] wrote Anick Jesdanun of the Associated Press.

4. Will Canadian retailers need new payment equipment?

 Short Answer: Yes

Long Answer: “Apple Pay’s usefulness will be limited until more merchants install the necessary equipment, but many chains already do and more are coming,” wrote Anick Jesdanun of The Associated Press.

5. Will Apple Pay be secure?

Short Answer: Yes

Long Answer: Anick Jesdanun of The Associated Press indicated “Apple uses the phone’s fingerprint identification system to authorize purchases”  Jesdanun further explained “Apple stores (credit and debit) card information on a secure chip on your device, not on its servers. And it’s not even your real (credit and debit) card number. Rather, Apple verifies your card information with your bank and then stores an alternative card number. That way, if a merchant’s system gets hacked, only the alternative number is compromised, and that number would require one-time security codes available only with the physical possession of your phone.” [iv]

BONUS: Will this do away with the need for getting a paper receipt after I buy something? I HATE keeping track of paper receipts!  

(Okay, so, this question isn’t exactly a “most commonly asked” question but it would be cool if Apple Pay eliminated the need to get a paper receipt after you buy something.)

Short Answer: Yes

Long Answer:  Yahoo Tech columnist Dan Tynan indicates “Apple says it won’t store details of any transactions on its servers, though you will be able to view receipts inside your device’s Passbook app”[v]

In summary, as of right now, Canadians are in “wait and see” mode regarding Apple Pay. At first glance, it does seem promising. Would you jump on board?