Misplaced Pages

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101-931: Apple Pay is a mobile payment service by Apple Inc. that allows users to make payments in person, in iOS apps , and on the web. Supported on iPhone , Apple Watch , iPad , Mac , and Vision Pro , Apple Pay digitizes and can replace a credit or debit card chip and PIN transaction at a contactless-capable point-of-sale terminal . It does not require Apple Pay–specific contactless payment terminals; it can work with any merchant that accepts contactless payments. It adds two-factor authentication via Touch ID , Face ID , Optic ID , PIN , or passcode . Devices wirelessly communicate with point of sale systems using near field communication (NFC), with an embedded secure element (eSE) to securely store payment data and perform cryptographic functions, and Apple's Touch ID and Face ID for biometric authentication. Apple Pay can also be used to ride some public transport networks either through

202-486: A NFC bank card or smartphone application notably on Samsung Player One (with the same mobile phone operators than in Caen and Strasbourg), as well as the validation aboard with them of the transport titles and the loading of these titles onto the smartphone, in addition to the season tickets contactless card. This service was as well experimented then respectively implemented for NFC smartphones on 18 and 25 June 2013 in

303-568: A Samsung NFC smartphone provided by Orange in collaboration with Philips Semiconductors (for the first time, thanks to "Fly Tag", the system allowed to receive as well audiovisual informations, like bus timetables or cinema trailers from the concerned services). From 19 November 2007 to 2009, this experimentation was extended in Caen to more services and three additional mobile phone operators ( Bouygues Telecom , SFR and NRJ Mobile ) and in Strasbourg and on 5 November 2007, Orange and

404-499: A broad antitrust suit against Apple ; among other claims, the suit alleges that Apple has used anti-competitive practices to boost Apple Pay at the expense of rival payment platforms. In June 2020, it was announced that the European Commission (EC) will take two probes against Apple, one focused on Apple Pay. According to EC, Apple was abusing its control of its payment wallet by blocking third-party payment access to

505-588: A critical mass and it has become part of everyday life for many Swedes. Swedish payments company Trustly also enables mobile bank transfers, but is used mainly for business-to-consumer transactions that occur solely online. If an e-tailer integrates with Trustly, its customers can pay directly from their bank account. Unlike Swish, users don't need to register a Trustly account or download software to pay with it. The Danish MobilePay and Norwegian Vipps are also popular in their countries. They use direct and instant bank transfers, but also for users not connected to

606-481: A 500 yen deposit that will be refunded if the card is returned. The remaining 1,500 yen is immediately available for rides on transport, and more money can be charged on to the card (in 500, 1,000, 2,000, 3,000, 4,000, 5,000, and 10,000 yen increments), up to a card maximum of 20,000 yen. Cards may also be charged at at fare adjustment machines within any station's ticket gates, i.e. inside the fare-paid zone . On June 8, 2023, railway operators including JR East announced

707-464: A card reader. The card's technology allows for it to be read at a short distance from the reader, so contact is not required, despite instructions which often inform users to 'touch' ( タッチ , tacchi ) cards on readers. Many riders leave IC cards in wallets or pass cases, and pass these objects over reader when entering a ticket gate. The balance on the card is displayed when riders pass through ticket gates. The minimum fare to ride at least one stop

808-577: A certain route which make future rides a line between the specified stations free of charge. When traveling from a JR East station where Suica is supported to a station outside of the JR East area, purchasing a ticket is required. Tickets may be purchased with a Suica's balance. Suica are available at ticket vending machines or customer service windows in the Suica area, namely at all JR East train stations. A new card costs 2,000 yen , which includes

909-412: A collaboration from major banks in 2012 and has been very successful, with 66 percent of the population as users in 2017. It is mainly used for peer-to-peer payments between private people, but is also used by churches, street vendors, and small businesses. A person's account is tied to his or her phone number and the connection between the phone number and the actual bank account number is registered in

1010-426: A combination of both NFC and a barcode on the mobile device for mobile payment, because many mobile devices in the market do not yet support NFC. QR code is a square two-dimensional bar code. QR codes have been in use since 1994. Originally used to track products in warehouses, QR codes were designed to replace the older one-dimensional bar codes. The older bar codes just represent numbers, which can be looked up in

1111-416: A database and translated into something meaningful. QR, or "quick response", bar codes were designed to contain the meaningful information directly in the bar code. QR codes can be of two main categories: Mobile self-checkout allows for one to scan a QR code or barcode of a product inside a brick-and-mortar establishment in order to purchase the product on the spot. This theoretically eliminates or reduces

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1212-489: A machine's ability to read the card which may depend on the reading device. On the other hand, the Express-IC (EX-IC) card for Tokaido Shinkansen reservations is meant to be used in this manner (stacked on top of an IC card to facilitate transfer between Shinkansen and regular lines). The card incorporates a contactless Near Field Communication (NFC) technology developed by Sony called FeliCa . The same technology

1313-712: A mobile device. Notable mobile wallets include: A simple mobile web payment system can also include a credit card payment flow allowing a consumer to enter their card details to make purchases. This process is familiar but any entry of details on a mobile phone is known to reduce the success rate (conversion) of payments. In addition, if the payment vendor can automatically and securely identify customers then card details can be recalled for future purchases turning credit card payments into simple single click-to-buy giving higher conversion rates for additional purchases. However, there are concerns regarding information and payment privacy when cards are used during online transactions. If

1414-916: A new website detailing the simple process of withdrawing cash with a smartphone ( Google Pay , Samsung Pay , or Apple Pay). Bank of America says that "Consumer Debit Cards, U.S. Trust Debit Cards, Small Business Debit Cards (owner card only)" are supported. Wells Fargo and JPMorgan Chase also integrated Apple Pay support into their ATMs. On September 7, 2016, Apple announced that iPhone 7 and Apple Watch Series 2 users in Japan can add both local credit cards and FeliCa cards to their Apple Pay wallets. Only Suica cards are supported by Apple Pay, which can be used at subway stations, convenience stores, etc., just like regular Suica cards. Apple Pay also supports payment via all QUICPay and iD enabled terminals that are already popular in Japan. On March 25, 2019, Apple Card

1515-413: A number of mobile communication companies, such as mobile network operators and major telecommunications infrastructure such as w-HA from Orange and smartphone multinationals such as Ericsson and BlackBerry have implemented mobile payment solutions. A mobile wallet is an app that contains the user's debit and credit card information, letting the user pay for goods and services digitally with

1616-453: A participating bank, credit card billing. In India a new direct bank transfer system has emerged called as Unified Payments Interface . This system enables users to transfer money to other users and businesses in real-time directly from their bank accounts. Users download UPI supporting app from app stores on their Android or iOS device, link and verify their mobile number with the bank account by sending one outgoing SMS to app provider, create

1717-484: A payment mechanism, but remote payments such as bill payments, seat upgrades on flights, and membership or subscription renewals are commonplace. In comparison to premium short code programs which often exist in isolation, relationship marketing and payment systems are often integrated with CRM , ERP , marketing-automation platforms , and reservation systems . Many of the problems inherent with premium SMS have been addressed by solution providers. Remembering keywords

1818-489: A prepaid Suica balance and a credit balance for which monthly bills are sent. Thus, store-related cards like the Bic Suica can include fully three separate functions: serving as a store point card, a general use Suica, and as a credit card. Any credit purchase (restricted, in the case of Bic, to JCB ) adds a small amount to the available points on the store point card. Yet another type of Suica offered by Japan Airlines that

1919-617: A temporary suspension of sales of unregistered cards, which do not display the customer's name, due to the 2020–2023 global chip shortage . In August 2023, sales of registered cards displaying the customer's name (My Suica) were also suspended, and customers were encouraged to use Mobile Suica instead. As of March 2024, sales of the card remain officially suspended "for the time being", but since January 2024 have been available in limited quantities to foreign tourists at customer service centers. Suica are sold by JR East and two of its subsidiaries: The View Suica  [ jp ] pairs

2020-445: A transfer of balance if the card is lost, stolen, or breaks. In August 2019, JR East unveiled Welcome Suica, a Suica variant designed to be used by international tourists visiting Japan. The card's design features white cherry blossoms on a red background. Welcome Suica is also reloadable, but unlike regular Suica cards, Welcome Suica does not require the user to make a deposit. However, Welcome Suica can only be used for 28 days from

2121-619: A user receives a payment, the funds are deposited in the recipient's Apple Cash card, where it is available for immediate use at merchants that accept Apple Pay. Prior to April 2022, the Apple Cash Card was provisioned as a Discover contactless debit card . Apple Cash device account numbers currently are issued/reissued on the Visa payment network , ensuring a larger acceptance for the Apple Cash card at more merchants. Alternatively,

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2222-546: A virtual payment address (VPA) which auto generates a QR code and then set a banking PIN by generating OTP for secure transactions. VPA and QR codes are to ensure easy to use & privacy which can help in peer-to-peer (P2P) transactions without giving any user details. Fund transfer can then be initiated to other users or businesses. Settlement of funds happen in real-time, i.e. money is debited from payer's bank account and credited in recipient's bank account in real-time. UPI service works 24x7, including weekends and holidays. This

2323-399: A website is not secure, for example, then personal credit card info can leak online. The consumer uses the mobile billing option during checkout at an e-commerce site—such as an online gaming site—to make a payment. After two-factor authentication involving the consumer's mobile number and a PIN or one-time password (often abbreviated as OTP ), the consumer's mobile account is charged for

2424-417: Is a logical alternative to credit card and Premium SMS billing. In 2012 Ericsson and Western Union partnered to expand the direct operator billing market, making it possible for mobile operators to include Western Union mobile money transfers as part of their mobile financial service offerings. Given the international reach of both companies, the partnership is meant to accelerate the interconnection between

2525-543: Is adding one million new users per week worldwide. On July 11, 2016 Liquor Control Board of Ontario (LCBO) confirmed that it accepts Apple Pay at all of its over 850 stores in Ontario , Canada. LCBO had been gradually rolling out Apple Pay support since June at its stores, which had NFC-based terminals for contactless payments. Starting on August 19, 2016, Apple Pay will be available in Chick-fil-A restaurants across

2626-775: Is also deployed in the Edy electronic cash cards used in Japan, the Octopus card in Hong Kong, and the EZ-Link Card in Singapore. On 18 March 2007, the Tokyo-area private railways, bus companies, and subways implemented PASMO , a smart card solution to replace the existing Passnet magnetic card system. Through collaboration with JR East, passengers can use Suica wherever PASMO cards are accepted to ride any railway or bus in

2727-463: Is also widely used as electronic money for purchases at stores and kiosks, especially at convenience stores and within train stations. In 2018, JR East reported that Suica was used for 6.6 million daily transactions. As of October 2023, 95.64 million Suica (including Mobile Suica ) have been issued, and 1.63 million stores accept payment via Suica's digital currency. Since Suica is completely interchangeable with PASMO (see Interoperation ), it

2828-455: Is called JALCARD Suica. In addition to having Suica and credit card functionalities, a JALCARD Suica can also function as an electronic boarding pass for a JAL-operated domestic flight in Japan at an airport that offers the JAL IC service. "My Suica" is JR East's term for a Suica registered in one's name. Riders may input their personal information at the time the card is created which allows for

2929-518: Is compatible with iPhone 6 and newer, iPad Air 2 and newer, Macs with Touch ID, and Apple Watch Series 1 and later. In iOS 17 or later, the number of cards able to be added to the service is determined by the capacity of the secure element, which varies by device. Apple Pay uses the EMV Payment Tokenization Specification. The service keeps customer payment information private from the retailer by replacing

3030-602: Is completed. The payment could be deducted from a pre-paid account or charged to a mobile or bank account directly. Mobile payment method via NFC faces significant challenges for wide and fast adoption, due to lack of supporting infrastructure, complex ecosystem of stakeholders, and standards. Some phone manufacturers and banks, however, are enthusiastic. Ericsson and Aconite are examples of businesses that make it possible for banks to create consumer mobile payment applications that take advantage of NFC technology. NFC vendors in Japan are closely related to mass-transit networks, like

3131-482: Is gaining a million new users each week, yet the company did not reveal the total number of Apple Pay users. Apple also revealed that transaction volume through the service is five times what it was a year ago, and that payment volume within apps more than doubled in the second half of 2015. With the launch of Apple Pay in China, the service hit three million provisions inside its first three days, while, more generally, it

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3232-514: Is largely because Regulation (EU) 2015/751 capped interchange fees in the European Economic Area at 0.3% for personal credit cards and 0.2% for personal debit cards with effect from June 8, 2015. In Russia, Apple receives 0.05% for debit cards and 0.12% for credit cards of each purchase, and in addition the bank pays 45 rubles a year for each card added in the service. Apple is ending its in-house "buy now, pay later" service in

3333-584: Is not immediate. The settlement time depends on the payment method chosen by the customer. (An exception being payments made using a card which stores the user's balance on the card itself, such as a Japanese Suica card or a Hong Kong Octopus card. These cards can transfer funds directly to the merchant without the need for an online connection.) In the United Kingdom , traditional contactless payments using bank cards are limited to £100 (previously £45 until 14 October 2021) as no cardholder authentication

3434-498: Is not required since sessions are initiated by the enterprise to establish a transaction specific context. Reply messages are linked to the proper session and authenticated either synchronously through a very short expiry period (every reply is assumed to be to the last message sent) or by tracking session according to varying reply addresses and/or reply options. Direct operator billing, also known as mobile content billing, WAP billing , and carrier billing, requires integration with

3535-458: Is outfitting some of its ATMs with Apple Pay support and the ability to withdraw cash using it. The new Apple Pay enabled ATM is outfitted with the NFC reader and logo that Apple Pay users have become used to seeing since the service launched. The NFC reader is located directly to the left of the card reader, although unlike the card reader, the NFC reader does not light up. Bank of America has launched

3636-578: Is possible to register for Mobile Suica using any major credit card. A limited e-money -only application called "Easy Mobile Suica" (which does not require a credit card) was also launched in late October 2006. On September 7, 2016, Apple announced that Suica cards could be added to Apple Pay in the Wallet app and used in the same way as a physical card. This functionality was limited to devices purchased in Japan which included FeliCa support: iPhone 7 (model A1779 and A1785) and Apple Watch Series 2 . With

3737-501: Is provided as part of the transaction. Payments using Apple Pay, however, support payments of any amount owing to the increased security and lower risk of fraud in Apple Pay transactions (although some issuing banks may impose their own transaction limits, and not all contactless readers support this functionality – see CDCVM below). Similar transaction limits apply in other countries. Apple assumes some liability for fraudulent use of

3838-403: Is required to enter, but no fare is charged until the user exits the system, upon which cards much be touched on readers again. A travel record of the past 20 trips is stored on the card, and can be displayed or printed out at ticket machines or some fare adjustment machines. Along with fare balance, Suica may store commuter passes, pre-purchased fares for one, three, or six month periods along

3939-707: Is slowly becoming a very popular service in India and is processing monthly payments worth approximately $ 10 billion as in October 2018. In Poland the Blik mobile payment system was established in February 2015 by the Polish Payment Standard (PSP) company. To pay with Blik, you need a smartphone, a personal account and a mobile application of one of the banks that cooperate with it. The principle of operation

4040-556: Is supported on virtually any train, tramway, or bus system in Tokyo and the Greater Tokyo Area (excluding various limited and shinkansen trains, as well as some local buses). Suica stands for " S uper U rban I ntelligent CA rd". In the logo, the letters "ic" are highlighted, which stand for integrated circuit and see use in the term "IC card", the common Japanese word for smart card . An additional meaning comes from

4141-573: Is the de facto standard for contactless smart cards in the country. NFC was used in transports for the first time in the world by China Unicom and Yucheng Transportation Card in the tramways and bus of Chongqing on 19 January 2009, in those of Nice on 21 May 2010, then in Seoul after its introduction in Korea by the discount retailer Homeplus in March 2010 and it was tested then adopted or added to

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4242-449: Is to generate a 6-digit code in the bank's mobile application. The Blik code is used only to connect the parties to the transaction. It is an identifier that associates the user and a specific bank at a given moment. For two minutes, it points to a specific mobile application to which - through a string of numbers - a request to accept a transaction in a specific store or ATM is sent. Blik allows you to pay in online and stationary stores. By

4343-452: Is updated to support the latest network contactless specifications. About two-thirds of merchants accept contactless payments. Due to provisioning differences between countries (and even between issuers), users may encounter acceptance issues when travelling to a different country. Some known examples include: Apple Cash , formerly Apple Pay Cash , is a feature that allows the transfer of money from one user to another via iMessage . When

4444-491: The European Payments Council (EPC). The EPC states that "new technology solutions provide a direct improvement to the operations efficiency, ultimately resulting in cost savings and in an increase in business volume". There are four primary models for mobile payments: In models connected to a bank or operator, a bank /operator is the central node of the model, manages the transactions and distributes

4545-543: The Mobile Suica used since 28 January 2006 on the JR East rail network. The mobile wallet Osaifu-Keitai system, used since 2004 for Mobile Suica and many others including Edy and nanaco , has become the de facto standard method for mobile payments in Japan . Its core technology, Mobile FeliCa IC, is partially owned by Sony , NTT DoCoMo and JR East. Mobile FeliCa utilize Sony's FeliCa technology, which itself

4646-535: The Nationwide Mutual Usage Service "IC" logo, typically alongside the various card logos. Most vending machines , kiosks, and coin-operated lockers within JR stations can also be paid with the card; the card may also be used as an electronic key to open the specific locker used. As of 2004, JR East employees use the card as an employee ID card. Usage of the card involves scanning it at

4747-637: The Nintendo eShop through the NFC function of the Wii U GamePad and the New Nintendo 3DS . The service was discontinued on January 18, 2022. Since January 2006, a version called Mobile Suica ( モバイルSuica , Mobairu Suika ) was incorporated into mobile FeliCa wallet phones by Japan's mobile operators. This system includes Java applications to manage the Suica function in the mobile phone , to recharge

4848-491: The ideophone "sui sui" which means "to move smoothly and swiftly", intended to highlight the simplicity of using the card compared with traditional train tickets. Since penguins can also swim smoothly through water, a penguin is used as a motif. The Suica penguin mascot  [ jp ] was designed by illustrator Chiharu Sakazaki. While Suica's primary usage is as a fare card for public transportation, it can also be used as electronic money for general purchases. With

4949-429: The 2000s and later all over the world in different ways. The first patent exclusively defined "Mobile Payment System" was filed in 2000. In a developing country , mobile payment solutions can be deployed as a means of extending services of financial institutions to the community known as the " unbanked " or " underbanked ", which is estimated to be as much as 50 percent of the world's adult population, according to

5050-520: The Blik, we can also make transfers to the phone or withdraw money from ATMs. Suica Suica ( Japanese pronunciation: スイカ , Suika ) is a prepaid rechargeable contactless smart card and electronic money system used as a fare card on train lines and other public transport systems in Japan, launched on November 18, 2001, by JR East . The card can be used across the nation as part of Japan's Nationwide Mutual Usage Service . The card

5151-777: The Financial Access 2009 Report "Half the World is Unbanked". Such payment networks are often used for micropayments . The use of mobile payments in developing countries has attracted public and private funding by organizations such as the Bill & Melinda Gates Foundation , the United States Agency for International Development , and Mercy Corps . Mobile payments are becoming a key instrument for payment service providers (PSPs) and other market participants, in order to achieve new growth opportunities, according to

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5252-464: The NFC hardware that enabled contactless payments. Apple opposed the claim and cited the COVID-19 pandemic as a cause of the increased number of people using contactless paying. Apple Pay can be used with any EMV contactless terminal globally as long as the customer is using a supported card. At least one issuer in each of the following 86 countries and territories issues such cards. Journalists in

5353-419: The Suica stored in the mobile phone, review the stored value and perform other functions via the mobile phone. An enhancement for 2007 allowed for Suica charges to be added directly to the phone bill, eliminating the requirement to constantly add to and monitor the remaining balance. On May 23, 2011, JR announced debut of Mobile Suica app for Android Smartphones supporting Osaifu-Keitai . It was first launched by

5454-681: The Tokyo metropolitan area. Monthly passes for JR East lines can only be on Suica, while monthly passes for Tokyo Metro can only be on PASMO cards; besides this caveat, the cards are functionally identical for commuters. This agreement has since been implemented with other systems across Japan, known as the Nationwide Mutual Usage Service . As a result, beginning in 2013, Suica has full interoperability with Kitaca , PASMO , TOICA , manaca , ICOCA , PiTaPa , SUGOCA , nimoca , and Hayakaken IC cards, along with several other local cards. On 22 July 2014, Nintendo added support for Suica and PASMO cards in

5555-591: The US, shifting to third-party lenders for instalment plans. Existing users can still manage payments via the Wallet app. Apple will partner with banks such as Citi, HSBC, and ANZ to offer these options in the upcoming iOS 18. In EMV-mode transactions, Apple Pay supports the use of the Consumer Device Cardholder Verification Method (CDCVM) using Touch ID, Face ID, or the phone's or watch's passcode. The use of CDCVM allows for

5656-479: The United States noted that the multiple previously unsuccessful efforts of other retailers to build mobile payments services, including those of PayPal , Walmart , Target , Google Wallet , and Softcard . They noted that previous efforts did not solve customer inconvenience issues, and felt that Apple Pay potentially did. The Verge 's Adrianne Jeffries noted that mobile payment market fragmentation

5757-548: The United States, Apple faced opposition by the mobile payments industry, particularly the Merchant Customer Exchange (MCX) which was starting a competing system known as CurrentC . Several participants of CurrentC, such as Best Buy , Walmart , and Publix had initially stated that they would not accept Apple Pay as a result of exclusivity deals. CVS Pharmacy and Rite-Aid subsequently disabled all NFC payment systems in favor of CurrentC, although due to

5858-405: The United States, allowing fast food buyers to make their purchases both in-store and at the drive-thru using Apple Pay. On September 7, 2016, Wayfair announced that they will support Apple Pay online. On May 22, 2018, TransLink announced support for Apple Pay at all fare gates and on buses. On July 31, 2018, Tim Cook announced that both CVS and 7-Eleven in the United States will support

5959-455: The acoustic features of cell phones to support mobile payments and other applications that are not chip-based. The technologies like near sound data transfer (NSDT), data over voice and NFC 2.0 produce audio signatures that the microphone of the cell phone can pick up to enable electronic transactions. In the T-Cash model, the mobile phone and the phone carrier is the front-end interface to

6060-464: The carriers NTT DoCoMo and au , and now also offered by SoftBank Mobile and Willcom . Like physical cards, Mobile Suica cards can also be charged when the remaining balance gets low. Other features supported by the mobile phone includes the ability to review past Suica transactions via the phone's display. Mobile Suica interacts with the FeliCa chip using Java technology. Since October 2006, it

6161-470: The consumer's mobile phone. In Switzerland, TWINT offers the same function. In magnetic secure transmission (MST), a smartphone emits a magnetic signal that resembles the one created by swiping a magnetic credit card through a traditional credit card terminal . No changes to the terminal or a new terminal are required. Swish is the name of a system established in Sweden . It was established through

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6262-406: The consumers. The consumer can purchase goods, transfer money to a peer, cash out, and cash in. A 'mini wallet' account can be opened as simply as entering *700# on the mobile phone, presumably by depositing money at a participating local merchant and the mobile phone number. Presumably, other transactions are similarly accomplished by entering special codes and the phone number of the other party on

6363-500: The credit card issuers' income earned from the acquirer. The service was in preparation for "a long time", as Apple acquired startups, hired executives and filed patents related to payments. Apple partnered with American Express, Mastercard and Visa. Their joint project began in January 2013, though they had discussed Apple's potential involvement for years. Their joint solution was a system where single-use digital tokens would replace

6464-540: The customer's credit or debit card Funding Primary Account Number (FPAN) with a tokenized Device Primary Account Number (DPAN), and creates a "dynamic security code [...] generated for each transaction". The 'dynamic security code' is the cryptogram in an EMV -mode transaction, and the Dynamic Card Verification Value (dCVV) in a magnetic stripe data emulation-mode transaction. Apple added that they would not track usage, which would stay between

6565-622: The customers, the vendors, and the banks. Users can also remotely halt the service on a lost phone via the Find My iPhone service. To pay at points of sale, users hold their authenticated Apple device to the point of sale system's NFC card reader. iPhone users authenticate by using Touch ID , Face ID , or passcode , whereas Apple Watch users authenticate by double-clicking a button on an unlocked device. To pay in supported iOS apps, users choose Apple Pay as their payment method and authenticate with Touch ID or Face ID. Users can add payment cards to

6666-654: The date of purchase after which it expires permanently. It is also nonrefundable, regardless of the balance or user's activity. JR East request customers always carry with them a reference sheet, or receipt, to accompany the card. Ticket gates return an error when the scan encounters more than one compatible card. Although it is intended that each person have only one Suica, many people have more than one, or may carry other IC cards as well. Consequently, JR East began an awareness campaign in March 2007 to discourage commuters from storing multiple cards together. Incompatible cards, such as Edy , seem to have an inconsistent effect on

6767-723: The device itself to provide verification for the transaction and may not require the cardholder to sign a receipt or enter their PIN. Additionally, in certain markets which have a 'no verification contactless limit' using contactless cards (such as the £100 limit in the United Kingdom and the C$ 100 limit in Canada and the 300SAR limit in Saudi Arabia), the use of CDCVM can enable merchants to accept transactions higher than these amounts using Apple Pay, providing their terminal software

6868-596: The exception of archaic, first-generation cards printed before 2004, all Suica have the [REDACTED] logo, which indicates that the card can be used for e-money payments. Other components that may also appear alongside the e-money mark include: Chain stores such as FamilyMart , 7-Eleven , Lawson , Yodobashi Camera , Bic Camera , Doutor Coffee , CoCo Ichibanya , and MOS Burger support transactions with Suica. Many shops at Narita International Airport , Haneda Airport , and taxis also accept Suica payment. Stores that accept IC card payment are indicated by displaying

6969-493: The exclusivity period ending in August 2015, Rite Aid started to accept it August 15, 2015. Both CVS and Best Buy started to accept Apple Pay at all stores starting in October 2015. CurrentC ended in March 2017. Target's CEO Brian Cornell said that they would be open to accepting Apple Pay eventually after the conversion to chip and PIN technology is done, but they remain involved with MCX. On January 22, 2019, Target announced

7070-531: The existing systems in Tokyo from May 2010 to end of 2012. After an experimentation in the metro of Rennes in 2007, the NFC standard was implemented for the first time in a metro network, by China Unicom in Beijing on 31 December 2010. Other NFC vendors mostly in Europe use contactless payment over mobile phones to pay for on- and off-street parking in specially demarcated areas. Parking wardens may enforce

7171-422: The incidence of long checkout lines, even at self-checkout kiosks. Google, PayPal, GlobalPay and GoPago use a cloud-based approach to in-store mobile payment. The cloud based approach places the mobile payment provider in the middle of the transaction, which involves two separate steps. First, a cloud-linked payment method is selected and payment is authorized via NFC or an alternative method. During this step,

7272-400: The internet bank. The electronic identification system mobile BankID , issued by several Swedish banks, is used to verify the payment. Users with a simple phone or without the app can still receive money if the phone number is registered in the internet bank. Like many other mobile payment system, its main obstacle is getting people to register and download the app, but it has managed to reach

7373-636: The lawsuit to go forward in an October 2023 decision. In 2023, the Consumer Financial Protection Bureau (CFPB) began rulemaking on a proposal that would make Apple Pay and other digital payments services subject to bank-like oversight. The rule was finalized in November 2024, and applies to six other non-bank services, including those provided by Google and Amazon . In 2024, the Department of Justice (DOJ) launched

7474-399: The m-commerce market and the existing financial world. Near-field communication (NFC) is used mostly in paying for purchases made in physical stores or transportation services. A consumer using a special mobile phone equipped with a smartcard waves their phone near a reader module. Most transactions do not require authentication, but some require authentication using PIN, before transaction

7575-458: The mobile network operator. It provides certain benefits: One of the drawbacks is that the payout rate will often be much lower than with other mobile payments options. Examples from a popular provider: More recently, direct operator billing is being deployed in an in-app environment, where mobile application developers are taking advantage of the one-click payment option that direct operator billing provides for monetising mobile applications. This

7676-402: The names of the other banks. To maintain secrecy, JPMorgan set up a windowless "war room" where the majority of the sensitive work was done. Of their 300 people on the project, about 100 knew that the partner was Apple. Others close to the project did not know it was named "Apple Pay" until the announcement. The company's participation remained a secret leading up to its announcement. The service

7777-416: The owner stranded. In a 2018 publication released by Consumer Reports , Apple Pay Cash was the leading peer-to-peer payment service. Apple announced that more than one million credit cards had been registered on Apple Pay in the first three days of its availability, making it the largest mobile payment system in the United States at the time. There were 220,000 participating vendors when it launched. In

7878-636: The parking by license plate, transponder tags, or barcode stickers. In Europe, the first experimentations of mobile payment took place in Germany during 6 months, from May 2005, with a deferred payment at the end of each month on the tramways and bus of Hanau with the Nokia 3220 using the NFC standard of Philips and Sony . In France the immediate contactless payment was experimented during 6 months, from October 2005, in some Cofinoga shops ( Galeries Lafayette , Monoprix ) and Vinci parkings of Caen with

7979-435: The partnership between payments services and Apple "a rare piece of collaboration and agreement". He predicted that the service's effect on the mobile payments industry would be similar to the iPhone 's effect on the smartphone industry. Nathaniel Popper of The New York Times referred to the banks' level of coordination with Apple as "elaborate" and indicative of mutual "preparation and investment". Some analysts added that

8080-620: The payment itself is processed through existing payment networks such as credit and debit card networks. These solutions combine the ubiquity of the SMS channel, with the security and reliability of existing payment infrastructure. Since SMS lacks end-to-end encryption , such solutions employ a higher-level security strategies known as 'tokenization' and 'target removal' whereby payment occurs without transmitting any sensitive account details, username, password, or PIN. Point-of-sales mobile payment solutions have not relied on SMS-based authentication as

8181-438: The payment provider automatically covers the cost of the purchase with issuer linked funds. Second, in a separate transaction, the payment provider charges the purchaser's selected, cloud-linked account in a card-not-present environment to recoup its losses on the first transaction. The audio channel of the mobile phone is another wireless interface that is used to make payments. Several companies have created technology to use

8282-512: The prepaid Suica with a credit card. Various types of these "affiliate cards" exist, including at least one available through JR and View, and others such as the Bic Camera Suica. These function both as a prepaid Suica as well as a regular credit card, and provide an auto-charge feature to prevent exhausting the Suica balance. The automatically recharged amount is added to the user's credit card bill. Thus, these cards have two balances:

8383-526: The product demo was "remarkably smooth" and "a cohesive user experience". Patel said the process took five to ten seconds at a retail card reader and added that it may be less smooth at stores such as Walgreens, where cashiers prompt customers for loyalty cards and charity donations. The New York Times ' Neil Irwin wrote that Apple exaggerated the inconvenience of credit cards. Among the plastic card 's benefits, he included how others could make purchases on another's behalf and how dead cell phones could leave

8484-561: The property rights. In collaborative model, the financial intermediaries and telephonic operators collaborate in the managing tasks and share cooperatively the proprietary rights. In ISP model, a third party of confidence operates as an independent and “neutral” intermediary between financial agents and operators. Apple Pay or PayPal are the providers the most frequently associated to this model. There can also be combinations of two models. Financial institutions and credit card companies as well as Internet companies such as Google and

8585-561: The purchase. It is a true alternative payment method that does not require the use of credit/debit cards or pre-registration at an online payment solution such as PayPal , thus bypassing banks and credit card companies altogether. This type of mobile payment method, which is prevalent in Asia, provides the following benefits: Even as the volume of Premium SMS transactions have flattened, many cloud-based payment systems continue to use SMS for presentment, authorization, and authentication, while

8686-579: The release of the iPhone 8 , iPhone X and the Apple Watch Series 3 , and later, devices purchased anywhere in the world could be used with Apple Pay Suica. iOS 13 introduced support for creating a virtual Suica card from the Wallet app. iOS 15 introduced new Wallet app improvements and a dedicated category for adding Suica and other transit cards regardless of the device region setting. On May 24, 2018, Google announced that Suica cards could be added to Google Pay . This functionality

8787-583: The roll-out of Apple Pay support to all of its stores in the United States. Transport for London , one of Apple Pay's official UK launch partners and one of the largest contactless merchants in the world, became the UK's most used Apple Pay merchant. As of February 11, 2016, 20% of iPhone 6 users in the United States reported using the service at least once. Apple maintains an up-to-date list of merchants who accept Apple Pay on its website. On June 2, 2016, according to Fortune , Apple said its mobile payment platform

8888-463: The service could reduce the standard credit card transaction fees over time since fees traditionally cover credit card fraud . The banks were willing to work with Apple in the face of efforts like Bitcoin and the Merchant Customer Exchange , which seeks to work around the card networks. Early reviews of the service regarded it as easy to use, but were not sure whether the service would become widely adopted. The Verge 's Nilay Patel wrote that

8989-399: The service in any of four ways: through the payment card listed on their iTunes accounts, by taking a photo of the card, being provisioned from within the card issuer's app, or by entering the card information manually. Although users receive immediate notification of the transaction, the Apple Pay system is not an instant payment instrument, because the fund transfer between counter-parties

9090-544: The service. On May 31, 2019 New York City Transit announced support for Apple Pay at its OMNY terminals on busses and subways. On August 21, 2019, and December 23, 2019, Miami Dade Transit announced support for Apple Pay at all fare gates and on buses. In February 2020, Apple Pay accounted for 5% of global card transactions. On April 4, 2020, Publix CEO Todd Jones announced Publix would be supporting Apple Pay immediately to help consumers fight COVID-19. Mobile payment Mobile payments began adoption in Japan in

9191-403: The service. Banks are expected to carry the burden of the service, and Apple is said to have negotiated smaller transaction fees. In turn, the banks hoped to capture purchases that were formerly handled without credit. Financial Times reported that Apple receives 0.15% cut of US purchases made with the service, but, following the UK launch, reported that Apple's cut is much lower in the UK. This

9292-430: The service. In 2020, Swiss banks paid a fixed commission 0.275 CHF (US$ 0.26) quarterly on every card to Apple. Additionally, they paid 0.12% for credit card transactions, and 0.17% for web or app based transactions. Swiss antitrust authorities require that an acquirer pays maximum 0.44% of the transaction amount to the issuer. The competition commission calls this amount "interchange fee". Apple charges between 27% and 39% of

9393-454: The tramways and bus of Caen and Strasbourg. In Paris transport network, after a 4 months testing from November 2006 with Bouygues Telecom and 43 persons and finally with 8,000 users from July 2018, the contactless mobile payment and direct validation on the turnstile readers with a smartphone was adopted on 25 September 2019 in collaboration with the societies Orange, Samsung, Wizway Solutions, Worldline and Conduent. Other vendors use

9494-568: The transfer of personal information. A Visa executive said that 750 people at the company worked on the anonymized "token" system for a year, and the other partners had similar teams in collaboration. Mastercard began work on the project in 2013 and hoped that their joint work would become a "standard for mobile payments". The announcement of the service came at a time when Mastercard and Visa policy created strong incentives for upgrading to mobile payment-compatible point of sale systems. Apple then approached several big banks in mid-2013 and did not divulge

9595-508: The transport societies SNCF and Keolis associated themselves for a 2 months experimentation on smartphones in the metro, bus and TER trains in Rennes . After a test conducted from October 2005 to November 2006 with 27 users, on 21 May 2010, the transport authority of Nice Régie Lignes d'Azur was the first public transport provider in Europe to add definitely to its own offer a contactless payment on its tramways and bus network either with

9696-774: The use of credit/debit cards (open loop) (for example across TfL in London , SL in Stockholm , and at OMNY readers across New York City's subway and city buses in Laval, with the STL and bus network) or dedicated travel cards such as JR East 's Suica , the Chicago Transit Authority 's Ventra , the San Francisco Bay Area 's Clipper (closed loop) and Hong Kong 's Octopus Card . The service

9797-515: The user can choose to transfer the balance to a nominated bank account via ACH transfer . Since 2017, Apple Cash has been operated by Green Dot Corporation under the name "Green Dot Bank" and is available only for U.S. citizens or residents, 18 or older, with a physical residential address in the United States . Apple Pay does not cause additional fees for users and merchants. In Switzerland, for example, participating card issuers pay for

9898-582: Was announced at Apple's iPhone 6 event on September 9, 2014. At its announcement, Apple CEO Tim Cook described the magnetic stripe card payment process as broken for its reliance on plastic cards ' "outdated and vulnerable magnetic interface", "exposed numbers", and insecure "security codes". The iOS 8 .1 software update accompanying the service's launch activated Apple Pay on compatible devices. The company announced an API for app developers to build Apple Pay checkout into their apps. The service initially supported US-issued payment cards. An international roll-out

9999-540: Was announced in partnership with Goldman Sachs and Mastercard. In June 2024, it was announced that online Apple Pay purchases would be able to be initiated from third party devices. Users will be provided with a code they must scan with an iPhone running iOS 18 or later to complete the transaction. In 2022, Apple faced a class action lawsuit from Affinity Credit Union that claimed Apple engaged in anti-competitive conduct to privilege Apple Pay by limiting users' ability to use alternate payment options. A federal judge allowed

10100-521: Was ongoing, beginning with support for UK -issued payment cards in July 2015. On December 17, 2015, Apple announced that it would launch Apple Pay with fifteen major banks in China , and Chinese users could start to use Apple Pay on February 18, 2016. In October 2015, Apple Pay vice president Jennifer Bailey confirmed that KFC, Chili's, and Starbucks would begin accepting Apple Pay in 2016. Bank of America

10201-426: Was partially due to Apple's refusal to enter the market. BusinessWeek 's Joshua Brustein added that Apple has a history of letting "first movers fail" with an early version of the service before releasing "a more polished version of the same idea". The Verge 's Dieter Bohn called Apple Pay the "week's most revolutionary product" and the announcement "a classic Apple moment of simplification and integration", and

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