New Delhi: Apple at its event on Tuesday introduced a new mobile payments service dubbed Apple Pay. Each phone will come equipped with its new payments service, which launches in the United States next month and allows users to pay for items in stores with their phones instead of physically presenting their credit or debit cards.
Consumers will be able to use their phone cameras to capture a photo of their cards. Apple will verify it behind the scenes and add it to the phone's Passbook account so people can make payments at a retailer.
Apple announced several merchants that will accept this system, including Macy's, Whole Foods, Walgreens and Disney stores. American Express, Visa and MasterCard all are cooperating with Apple, too, as well as most major banks.
For security, the card number is stored only on the device. Each time you pay, a one-time card number is created to make the transaction.
The introduction of the new payment service comes at a time when the US mobile payments market is expected to see steep growth: Forrester Research forecasts US mobile payments will reach $90 billion in 2017, a 48 per cent increase from 2012.
According to a Bloomberg report, Apple will charge fees from banks every time consumers use their iPhone to make purchases, a move that will give the company a cut of the growing mobile payments market.
Apple also introduced the iPhone 6, iPhone 6 Plus and the Apple Watch at the same event.
(With inputs from agencies)
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