Initially released in the fourth quarter of 2014, Apple’s mobile payment service — Apple pay— was custom tailored to aid in the ease and security of financial transactions. Most mobile phone owners worldwide prefer smartphones over the simpler feature phones. Apple being among the best performers in terms of number of smartphones shipped worldwide daily, its no surprise that the Cupertino based iPhone markers decided to venture into the world of mobile payment. It also comes as no surprise neither as more and more businesses and individual opt to use Apple pay. From fast food stores such as McDonald’s and Jamba Juice, to supermarkets such as Whole Foods, to clothing stores such as Bloomingdale’s and Macy’s among others, Apple pay is gaining more popularity as these popular retail chains participate in Apple pay. Thou apple pay hasn’t been incorporated into every store or business yet (which is technically not possible in this decade) but Apple pay currently presents an easy and secure alternative to not just other mobile payment system but to other conventional payment methods as well. To pay with apple pay, the user keeps his finger on the Touch ID, selects the card that he wants to purchase with, and then holds the iPhone over the merchant’s Apple Pay reader, payment is then processed electronically. Or you can double-click the home button when your iPhone is locked to access Wallet and quickly make your purchase. With the increasing acceptance of apple pay, the concerns however shifts to more critical aspects of the payment platform — Security. The question on the lips of concerned individual now becomes; Just how save is apple pay?
Apple being Apple , one would expect a watertight security measure, perhaps even more importantly because it involves finances. Certainly, the Cupertino iPhone makers have not disappoint in this area. Firstly, Apply Pay utilizes the fingertip touch ID technology to verify transactions which ensures that only the recognized owner of an apple device is able to make payment from it. In addition, the system does not provide the cardholder’s information directly to the merchant. Rather, Apple Pay utilises a
method of “tokenization” to handle payments processing. Instead of the typical account number transfer, the User manually inputs her card information into the Apple Pay system, and the system ” Tokenizes” the account number with detailed codes that can be easily transmitted between devices but are only used that one time. With Apple Pay, the token or unique Device Account Number which is generated is assigned, encrypted, and securely stored in a dedicated chip in iPhone, iPad, and Apple Watch. This greatly reduces any hacking chances of hackers that maybe possible by gaining access to a cardholder’s account by stealing the account number. According to Apple’s pay security page, When you make a purchase, the Device Account Number, along with a transaction-specific dynamic security code, is used to process your payment.
Loosing your Apple device could seem as if you are headed for a financial disaster, especially when the the said device contains your supposedly confidential or private financial details. But hold it in, Apple got you covered. If a you ever suspect or verify an insecure account activity, Apple Pay can be disabled through the iCloud system.
Though Apple inc offers strong security measures with its Apple pay payment platform, however, it won’t stop hackers from poking around — worse off, even discovering a security flaw. Quite frankly, from the day Apple pay launched researchers and hackers alike immediately started searching for security loopholes, and it won’t be surprising if the have found a handful already. since Touch ID was launched with the release of the iPhone 5S , there have already been experiments where the fingerprint reader was hacked. Another possible security loophole could stem from the Cupertino based company’s decision to place more trust in third party app developers. Soon enough, if not already done, experts said Companies like Target , Uber and Groupon will incorporate Apple Pay into their e-commerce apps to facilitate purchases, which is pretty huge potential security risks. Notably, given that people can access Apple Pay with an Apple Watch, which can be used with older models of the iPhone that do not have the Touch ID feature, the fingerprint security feature is virtually unnecessary, can be bypassed and furthermore presents another critical security flaw.