Apple will use NFC and Tokenization technology for its payments platform, according to BankInnovation sources 'close to Apple and with knowledge of Apple's plans for its new smartphone'.
Financial institutions — card issuers and networks — prefer token technology because it replaces primary account numbers, those 16-digit card numbers on the front of credit and debit cards. Instead, the tokenization technology uses complex codes that are easily transmittable over the air and between devices, but that are used only once, so even if they are intercepted, are of no use to fraudsters.
The site also points to a 2013 patent entitled 'Secure communication between trusted parties' in which Apple details how tokens might be used.
"As part of the three-party verification process a token or certificate-based authentication process may be implemented for subsequent communications between the electronic device and the approving entity such that a token or certificate stored on the electronic device and/or at the approving entity is utilized for authentication of subsequent communications."
BankInnovation says that Apple Stores already support NFC via the Verifone MX 915 terminal and thus would already be equipped to handle the payments service. Notably, Nordstrom, a rumored launch partner, just upgraded its mobile point-of-sale terminals hinting that they may be preparing to support the payments platform as well. CVS and Walgreens are also said to be on board with the service.
Apple is expected to unveil the iPhone 6, a wearable device, and a payments platform on September 9th. We'll have plenty of coverage before, during, and after. You can follow iClarified on Twitter, Facebook, or RSS for updates. The iClarified app can be downloaded from the App Store for free!
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Financial institutions — card issuers and networks — prefer token technology because it replaces primary account numbers, those 16-digit card numbers on the front of credit and debit cards. Instead, the tokenization technology uses complex codes that are easily transmittable over the air and between devices, but that are used only once, so even if they are intercepted, are of no use to fraudsters.
The site also points to a 2013 patent entitled 'Secure communication between trusted parties' in which Apple details how tokens might be used.
"As part of the three-party verification process a token or certificate-based authentication process may be implemented for subsequent communications between the electronic device and the approving entity such that a token or certificate stored on the electronic device and/or at the approving entity is utilized for authentication of subsequent communications."
BankInnovation says that Apple Stores already support NFC via the Verifone MX 915 terminal and thus would already be equipped to handle the payments service. Notably, Nordstrom, a rumored launch partner, just upgraded its mobile point-of-sale terminals hinting that they may be preparing to support the payments platform as well. CVS and Walgreens are also said to be on board with the service.
Apple is expected to unveil the iPhone 6, a wearable device, and a payments platform on September 9th. We'll have plenty of coverage before, during, and after. You can follow iClarified on Twitter, Facebook, or RSS for updates. The iClarified app can be downloaded from the App Store for free!
Read More