Remember the days when you had to pull out your credit card and hand it to the cashier in order to pay for stuff? Or even worse, do you recall the time when you had to count bills and pay in cash? It seems that these actions have become too complicated for the modern man, so Apple decided to make life easier for us all with Apple Pay - a wireless, digital wallet that will simplify the way you pay for the merchandise from the Internet as well as real life transactions.
Apple Pay will become available in October this year. The system is dependent on your iPhone, but will also be usable from the upcoming Apple Watch. In physical locations the digital wallet works with the help of a small NFC (Near Field Communication) antenna which transmits the information from your phone to the register. At the moment this feature is only available in the US for a restricted number of retailers and banks, but the system is constantly expanding.
Basically, the Cupertino-based company already has you credit card information form your iTunes account, but you can also easily add new CCs by taking a picture of your card with the iPhone and confirming it with your bank. Once the process is completed, you will be able to purchase products from stores that support Apple Pay simply by holding your iPhone close to the NFC device at the register. In terms of online purchases things are just as fast. All you have to do is tap the Pay button, then confirm the transaction with your security code or fingerprint, and it's done.
This system isn't only supposed to be faster and easier, but also more secure. Firstly, when you pay with your phone, the cashier doesn't get to see your name, card number or security code. Secondly, all the really sensitive financial information is stored in a secure (hardware as well as software) location on your phone called the "Secure element". Lastly, the app doesn't store your actual credit number, but your account number and gives your device a dynamic unique identifier in order to insure that your data is as far away from reach as possible.
Now, why we are supposed to trust Apple to keep our credit/debit card information secure when they couldn't keep a few celebrities' photos safe, that is a question that each of us should answer.