What is Apple Pay and How Does it Work?

Apple Pay is a mobile payment and digital wallet service by Apple Inc. that lets you make payments using compatible iPhone, iPad or Apple Watch models. You can also use the Wallet app on your iPhone to make online purchases with Apple Pay from your computer’s browser.

Safari web apps even authenticate these transactions using a fingerprint scan on the Touch ID sensor built into newer iPhones and iPads.

Apple Pay uses near-field communication (NFC) technology to transmit payment information between devices. When you’re ready to pay, just hold your iPhone or iPad near the contactless reader at the checkout and authorize the payment with your fingerprint or passcode. Apple Watch users will need to double-click the side button and hold the face of their watch up to the contactless reader.

You can also use Apple Pay in some apps on your iPhone or iPad. To do this, just select the Apple Pay button at checkout, then approve the payment with your fingerprint or passcode.

What are the Benefits of Using Apple Pay?

There are several benefits to using Apple Pay, including:

1. Convenience – With Apple Pay, you no longer need to fumble through your wallet or purse to find your credit or debit card. Just hold your iPhone near the contactless reader and authorize the payment with your fingerprint or passcode.
2. Security – Apple Pay is a very secure way to make payments. Besides requiring a fingerprint or passcode to authorize a payment, the system also issues a unique Device Account Number for each card you add to your account. The actual credit or debit card numbers are not exchanged between merchants and Apple when you pay using Apple Pay.
3. Identity Theft Protection – Apple Pay comes with groundbreaking identity theft protection. Using the service is also a great way to build credit, as many card issuers report your on-time payments to all three major credit agencies – Experian, Equifax and TransUnion.

What Banks Support Apple Pay?

There are more than 500 banks around the world that support Apple Pay. To find a participating bank near you, just search for your bank’s name and “Apple Pay.” Here are a few of the banks that offer support:

1. American Express – As one of the largest issuers of credit cards in the United States, American Express has been at the forefront of payment technology since its beginnings in 1850. By working closely with Apple on the development of its mobile wallet, American Express has been a key player in bringing Apple Pay to market.
2. Bank of America – One of the largest banks in the United States, Bank of America offers support for Apple Pay from both its personal banking and business solutions divisions. The company was also one of the first to offer Apple Pay support on its Android app.
3. Capital One – Capital One is a major credit card issuer, and it has been quick to embrace the potential of Apple Pay as well as other mobile payment options such as Samsung Pay and Google Wallet. The company also offers its own cardless ATM solution called Ca$h.
4. Chase – As one of the largest issuers of credit cards in the United States, Chase was an early adopter of Apple Pay and has been a strong supporter of the mobile payment option. The company is also a member of the Merchant Customer Exchange (MCX), a consortium of retailers that developed its own mobile payment solution called CurrentC.
5. Citi – One of the largest banks in the world, Citi was an early adopter of Apple Pay and has been a strong supporter of the mobile payment option. The company offers support for Apple Pay from both its personal banking and business solutions divisions.
6. Wells Fargo – Wells Fargo is one of the oldest and most well-respected banks in the United States. The company was an early Apple Pay supporter, offering support for both its personal banking and business solutions divisions.
7. U.S. Bank – As one of America’s top 10 banks, U.S. Bank is a big supporter of mobile payment options like Apple Pay. From its personal banking division, U.S. Bank offers support for Apple Pay at more than 5,000 of its ATMs across the United States.
8. Barclaycard – A major credit card issuer in the United Kingdom, Barclays was one of the first banks to offer Apple Pay support as part of an upgrade to its mobile wallet app.
9. Navy Federal Credit Union – As the world’s largest credit union, Navy Federal offers support for Apple Pay across its entire product line including savings accounts, checking accounts and business banking solutions.
11. PNC Bank – With more than $380 billion in assets, PNC is one of America’s top 10 banks. The company offers support for Apple Pay from both its personal banking and business solutions divisions.