What is Apple Pay and how does it work?

Quick Links:

> What is Apple Pay?
> How does Apple Pay work?
> What you need to use Apple Pay
> How to set up Apple Pay
> How do you pay with a different card instead of your default card?
> How to use Apple Pay
> How much can you spend on Apple Pay?
> Is Apple Pay safe?
> Apple Pay vs Google Pay vs Samsung Pay
> Which devices work with Apple Pay?
> What banks and cards are eligible?
> Who accepts Apple Pay?
> Which apps support Apple Pay?
> What are the benefits of accepting Apple Pay?
> How to accept Apple Pay
> FAQS

What is Apple Pay?

Apple Pay is a contactless payment solution using an Apple device, such as an iPhone or Apple Watch. It’s essentially a digital wallet that lets users store their credit or debit card details, so they can pay for goods or services with their device instead of the card itself.

How does Apple Pay work?

Apple Pay uses near-field communication (NFC) chips embedded in Apple devices to make contactless payments. The technology can also be used for in-app and online purchases.

Unlike contactless card payments, Apple Pay comes with an extra layer of security. Users can verify who they are by placing a finger on the Touch ID sensor, or by using facial recognition and a passcode, if your iPhone has this feature (more on how each of these options work later).

What you need to use Apple Pay

• An Apple Pay compatible device with a Touch ID sensor
• iOS 8.2 or newer operating system (depending on the device)
• A credit or debit card from a supported bank
• An Apple ID signed in to iCloud

How to set up Apple Pay

1. Open your Apple Wallet (formerly known as Passbook). This is a built-in app on Apple devices that users can upload their debit and credit card details to.
2. If you’ve already got a debit or credit card linked to your Apple ID (i.e. if you’ve made an iTunes purchase), you can use it for Apple Pay, too. If this is the case, you’ll need to re-enter the card’s security code and any other verification steps your bank requires.
3. If you don’t yet have a card linked to your Apple ID, or you want to add another card to your Apple Pay account, tap ‘add credit or debit card’ or the ‘+’ icon in the top right hand corner and follow the steps on the screen. You’ll either need to take a photo of the card or type in its details.
4. Once your bank has verified your card details, tap ‘Next’ and you’re ready to go.

Want to remove a card? Just select it, tap the menu icon in the top right corner, then scroll to the bottom to the ‘Remove card’ option.

If you’re using an Apple Watch, you’ll need to use your iPhone to add credit and debit cards. Open the Watch app on your phone and go to the ‘My Watch’ tab, then select ‘Wallet & Apple Pay’ and follow the steps.

How do you pay with a different card instead of your default card?

If you’ve added more than one credit or debit card to your Wallet, you can choose which one you want to set as your default payment method. Apple Pay will then use this card automatically for payments.

Want to pay with a different card? Just tap your default card when it appears, then tap again to choose another. Use Face ID or Touch ID to pay.

On Apple Watch, double-click the side button and when your default card appears, tap it and choose another card. Place your finger on Touch ID to pay.

How much can you spend on Apple Pay?

While contactless payments via credit and debit card can only be made up to the value of £45 in most UK stores, Apple Pay can be used for goods or services above this threshold – providing the retailer or bank hasn’t set a limit of their own. In some countries, users may need to sign a receipt or enter their PIN to use Apple Pay for transactions above a certain amount.

Is Apple Pay safe?

In short, yes. Apple Wallet and Apple Pay don’t store card details on your device. Instead, the system uses payment tokenisation to keep user details safe.

When a card is added, a unique Device Account Number (or token) is generated. This token is stored in a Secure Element chip in your Apple device and when you want to make a payment, it’s matched with a unique dynamic security code and the transaction is processed. Retailers and merchants never have direct access to your card details and the token is meaningless on its own as it cannot be reverted back to the original card information.

If your iPhone, iPad, Apple Watch or Mac is lost or stolen, you can suspend Apple Pay remotely (or wipe it altogether) using Find My iPhone. Alternatively, you can remove your credit and debit cards via iCloud or through your bank.

Which devices work with Apple Pay?

The following Apple devices are compatible with Apple Pay:

• Apple iPhone (SE and newer, including 6s, 6s Plus, 6 Plus, 7 and 7 Plus)
• Apple Watch (first generation, Series 1 or 2)
• MacBook Pro (with Touch ID)
• iPad (5th generation or newer)
• Pad Pro (12.9 or 9.7 inch screen models)
• iPad Mini (3 or 4)
• iPad Air 2
• A Mac model introduced in 2012 (or later) with an iPhone or Apple Watch with Apple Pay enabled

You can’t use Apple Pay on an iPhone 5s or older because they don’t have the NFC chip. An iPhone, iPad Air 2 or iPad Mini 3 must be running on iOS 8.3 or higher to make in-app payments.

However, an Apple Watch can work with the iPhone 5 (or newer), as long as it’s running on iOs 8.2 or higher.

What banks and cards are eligible?

Apple Pay supports many of the major credit and debit card providers, including Visa, MasterCard and American Express. It also works with the following UK banks and building societies (plus many more):

• Barclays
• NatWest
• First Direct
• Nationwide
• HSBC
• RBS
• Halifax
• Santander
• Lloyds
• Tesco Bank
• M&S Bank
• TSB
• Monzo
• The Co-operative Bank