Apple launches Apple Pay

Mobile payments are likely to take a giant step forward with Apple’s unveiling of Apple Pay, a new mobile payment platform built into the company’s new iPhone 6 and iPhone 6 Plus. The platform will also work with the new Apple Watch, extending the service to over 200 million owners of iPhone 5, iPhone 5c and iPhone 5s worldwide.



The platform, which uses Near Field Communications (NFC), will let users pay for purchases in stores with just the swipe of their phone. Apple Pay will work with the bank issuers who cover 83% of the world’s credit card purchase volume, along with American Express, MasterCard and Visa. In addition to Apple’s U.S. retail stores, retailers that will support Apple Pay include Bloomingdale’s, Disney Store, Duane Reade, Macy’s, McDonald’s, Sephora, Staples, Subway, Walgreens and Whole Foods Market. It will also work at the over 220,000 merchant locations across the U.S. that have contactless payment enabled.



“Our mission is to replace your wallet, starting by focusing on payments," said CEO Tim Cook at the application’s unveiling event in Cupertino, California, during which Apple also debuted the iPhone 6 and the long-awaited Apple Watch.



Apple said it will not be able to track any details of user purchases (other than the fact a transaction took place). And if a user loses their iPhone, instead of canceling their cards they can instead suspend Apple Pay on that particular device until it is recovered.



"We have security integrated throughout both hardware and software in a way only Apple can," Eddy Cue, Apple's SVP of Internet software and services, said at the presentation.