Understanding How Apple Pay Works

Understanding How Apple Pay Works

When you use Apple Pay at a participating retailer, the transaction is protected by the same sophisticated security that protects your credit or debit card when you swipe it. And that means your card number and details are never shared with the merchant or transmitted with the payment. That’s why payments using Apple Pay are so secure.here

How Does Apple Pay Work? A Comprehensive Guide

To make a purchase in an app or on a website, your device and the seller’s system communicate over an encrypted channel using NFC (near field communication) technology. When you choose Apple Pay, your iPhone will automatically open Wallet and display your options. Just hold your phone up to the NFC reader at the point of sale or enter your passcode or Touch ID to complete the transaction.

Behind the scenes, when you add a card to Apple Pay, your card’s PAN (primary account number) and other card related information is sent to the Wallet app. This information is then encrypted and securely stored on the iPhone’s chip. A unique Device Account Number is assigned, along with a dynamic security code that’s generated for each transaction. Your actual card numbers are never stored on Apple’s servers or anywhere else on your device.

When you use Apple Pay, your card details are encrypted on the device and authenticated with a unique device-specific number and unique cryptographic key. When you check out, your Device Account Number is used to confirm the payment and a dynamic security code is used to authorize the transaction. In addition, Apple’s Find My feature helps protect your cards if you misplace or lose an iPhone.