PAY.ON is preparing for the October launch of Apple Pay in the US, with planned integration and support for Apple’s recently announced digital wallet service.
Although Apple Pay will only be rolled out in the US initially, in partnership with major card schemes and selected merchants, we expect that it will not be long before it is available internationally. This is why PAY.ON is acting now to ensure that our customers will have the best possible integration options available to them.
Wolfgang Berner, Vice President Product & Integration for PAY.ON, says: “We’re currently moving forward with Apple Pay integration, developing an implementation and SDK (software development kit), in anticipation of growth in consumer demand for contactless payment methods sparked by Apple Pay”.
PAY.ON, as a worldwide leader in omni-channel payment processing, has always strived to offer the broadest possible range of alternative payment methods as well as supporting mobile payment technologies. It’s a natural development that Apple Pay integration is a top priority for our team, and discussions with the major card schemes, acquirers and of course Apple are informing our direction.
Last week’s announcement of Apple Pay has seen widespread coverage in payments media, with much speculation and commentary about how NFC-enabled Apple devices could be a turning point in the development of mobile payments. This is largely due to Apple’s track record in transforming industries and the unprecedented level of cooperation that Apple Pay has already achieved. A number of payment technology providers, including Linkpay and Adyen, have announced their intention to support Apple’s new mobile payment system.
Could VISA’s and Mastercard’s tokenization become a new industry standard?
Apple Pay, unlike some previous digital wallets, has taken an approach that complements rather than competes with the existing, largely card dominated, payment networks.
Berner: “Apple Pay, rather than interfering with existing payment networks, has created a secure mechanism for creating, storing and transferring a tokenized card number – really a temporary virtual card number – into any existing payment network”.
Use of tokens is one of the security measures to be implemented by Apple Pay, in addition to Touch ID (biometric authentication). The use of tokens, which can be used for NFC contactless payments as well as in-app purchases and ecommerce transactions, is definitely a positive one for the payments industry.
Security remains all important, and the perceived safety of using Apple Pay is certain to play a role in consumer adoption. Many questions still remain for acquirers, issuers and payment gateways, however Apple’s leveraging of industry-standard technology such as NFC and tokenization should minimize adoption hurdles. In light of the Apple partnership with Visa and Mastercard, there is some speculation that tokenization, an idea already used for years between merchants and payment providers, may become a new standard for global payments.
Stay tuned, we’ll have more news about how PAY.ON will support Apple Pay in the coming weeks.
TechCrunch demonstrates how Apple Pay will work at POS terminals.