Mobile payments exploded onto the scene in the early 2010s with Google Wallet and Apple Pay emerging as early leaders in proximity payments. But Apple quickly pulled ahead thanks to strong security, widespread retail support across stores and apps, and unmatched iPhone hardware/software integration.
The Rise of Apple Pay
Since its nationwide US launch in 2014, Apple Pay has dominated the in-person contactless payments space. As of 2022, Apple Pay accounts for an estimated 90% of contactless transactions globally.
Adoption continues its meteoric rise year over year:
| Year | Total Apple Pay Transactions |
|---|---|
| 2020 | 16 billion |
| 2021 | 24 billion |
| 2022 | 30+ billion (projected) |
And in 2022, over 90% of retailers in the US accept Apple Pay. This unmatched merchant support and ever-growing user base makes Apple Pay the clear leader for contactless mobile payments via iPhone.
Key Benefits of Using Apple Pay
So what drives Apple Pay‘s consumer enthusiasm and retail adoption? There are three core advantages:
Convenience – With just a tap or glance at checkout, Apple Pay is much faster than fumbling through your wallet for cards. Everything happens directly on devices already in hand for most people.
Compatibility – It‘s accepted nearly everywhere, from big chains like Target to local shops and mobile apps. Wherever you see the contactless or Apple Pay logo at checkout, you can tap to pay.
Security – With tokenization, encryption, biometrics like Face ID, and dynamic card numbers, Apple Pay offers best-in-class security and fraud protection.
Now let‘s walk through how to unlock these benefits by setting up and using Apple Pay on your iPhone step-by-step…
Step 1: Adding a Card
To start using Apple Pay, we first need to add an eligible credit or debit card. Begin by opening up the "Wallet" app pre-installed on your iPhone.
Next, tap the "+" sign visible in the top right of the Wallet app screen:
You‘ll then be prompted to use your iPhone‘s camera to scan your physical credit/debit card. Hold your card within the frame to auto-populate all the necessary card details.
Or choose the manual option to type your card details out one by one. You‘ll need to enter:
- Card number
- Expiration date
- Security code
You‘ll also need to verify identity by scanning an ID document in select cases.
Finally, agree to the card issuer terms and conditions to finish adding the card. You can repeat this process to add multiple credit and debit cards to Apple Pay as needed.
Troubleshooting Tips
Here are quick solutions for common issues faced when adding a card:
Can‘t Scan Card – Manually enter details; check adequate lighting
Details Not Recognized – Use numeric keypad for numbers; correct any typos
Verification Code Fail – Double check CVV code on back of card
Step 2: Verifying Your Card
Once a card is successfully added, Apple Pay will verify it with your card issuer before enabling payments. This links your card securely to your device.
You‘ll receive a verification code text from your card issuer that you‘ll need to enter into the Wallet app within 60 seconds:
Enter this code on the prompt screen to complete card verification. If you don‘t receive the text with a code right away, use the "Didn‘t receive verification code" link to resend.
This one-time verification process authenticates that you own the card and matches it to your iPhone.
Step 3: Picking a Default Card
If you‘ve added multiple cards, you next need to choose which should be your default card for Apple Pay transactions:
Tap into any of your cards under the payment cards header, then toggle the switch for "Default Card" on. This will now become the primary card used for any Apple Pay payments.
Having a default card pre-selected makes checkout faster. But you can still override to use alternate non-default cards when paying if preferred.
Compatible iPhone Models
At this point Apple Pay should be ready to use on any iPhone model 6 or later running at least iOS 8.1. The full list of compatible iPhone models includes:
| iPhone Model | iOS Version |
|---|---|
| iPhone 6 or newer | iOS 8.1+ |
| Apple Watch Series 1 – Series 7 | watchOS 3.0+ |
For iPhones without Touch ID or Face ID, double click the side button and enter your passcode to authenticate payments.
Older iPhones or iOS versions may not fully support Apple Pay capabilities or the latest security features. So aim to keep your software up-to-date whenever possible.
Step 4: Paying with Apple Pay In-Store
We‘re now ready to complete in-person contactless payments at checkout. First, look near any payment terminals as you check out for this symbol:
This confirms that you can use Apple Pay at that retailer. Then when ready to pay, simply hold the top edge of your iPhone within an inch or two of the payment terminal or card reader.
Newer iPhones (iPhone 12 and up) allow for contactless payments with the phone still in your pocket or bag up to several inches away thanks to specialized location technology advancements.
Once the terminal recognizes your iPhone is ready to pay, you‘ll be prompted to finish the process with Face ID, Touch ID, or your passcode.
Watch for the check mark symbol and listen for the payment successful sound notification. Within seconds, your purchase is complete!
If you hear an error sound or see an issue symbol, you may need to reposition your phone slightly closer to the payment terminal. Reread any on-screen messaging and try again.
The most popular US stores accepting Apple Pay now includes:
- Whole Foods
- Trader Joe‘s
- Walgreens
- CVS
- Target
- Walmart
- Best Buy
Check big retailers for the contactless logo near registers. But also look for it at local cafes, shops, pharmacies, transit stations and other public locations.
Step 5: Paying Online
Beyond in-person tap and go, Apple Pay also works for payments within:
- iOS apps
- macOS/Safari web pages
- watchOS
When checking out online, click/tap the Apple Pay purchase button if displayed:
Or look for the "Pay with Apple Pay" option under payment methods:
You‘ll go through the same verification process by scanning face/fingerprint or entering your passcode. Apple Pay will then facilitate payment.
Over 25 million online sites now accept Apple Pay payments across categories like:
- Retail
- Gaming
- Financial
- Travel
- Ride sharing
- Food delivery
So online Apple Pay usage continues to grow right alongside increasing mobile shopping and commerce.
Understanding the Secure Payment Process
We‘ve covered the basics to use Apple Pay in store and online. But how exactly does the underlying payment process protect sensitive data?
It relies on multiple layers of advanced security:
Tokenization – This converts your actual credit/debit card number into a unique randomized Device Account Number for each transaction. So rather than sending real card details over the air during payment, this substitute number gets sent instead.
NFC Encryption– Near-field communication encryption further scrambles the tokenized data between your iPhone to payment terminal contact point. This ensures the data remains private.
Biometric Authentication – Unlike swiping a physical card, Apple Pay requires authentication via Face ID facial recognition, Touch ID fingerprint, or your passcode as an extra security precaution.
Dynamic Card Number – For each Apple Pay transaction, a new dynamic card number is generated specifically for that single payment. So even with tokenization, the device account numbers stay randomized.
This level of end-to-end protection keeps Apple Pay extremely secure. Rates of fraud remain negligible compared to physical credit/debit card usage:
| Payment Type | Chance of Fraud |
|---|---|
| Physical Credit Cards | 0.14% |
| Apple Pay | 0.06% |
So both technologically and statistically, Apple Pay offers best-in-class payment security.
Customizing Your Apple Pay Experience
Beyond core payment functionality, Apple Pay offers robust account management and settings customization features.
To edit a saved card or update any account details like expiration dates, navigate back to the card itself within your Wallet app.
Tap the ••• icon to access options like freezing or removing a compromised card. You can also update details or change your default card from this menu.
For deeper Apple Pay settings modifications, head into the Settings app on your iPhone instead:
Here under Wallet & Apple Pay you can toggle transaction notifications on/off, show contact photos for payments, add supported student ID passes, and more based on your preferences.
Take the time to review settings to optimize for your usage patterns and security comfort level.
Lost or Stolen iPhone Guidance
We all hope it never happens, but what if you lose your iPhone or someone steals it?
The good news is you can use Apple‘s Find My app to remotely lock Apple Pay or erase your entire device. This will prevent criminals from attempting any unauthorized payments with your cards.
You can also contact your bank/card issuer immediately to proactively freeze accounts as an extra security measure in extreme cases.
Since actual card details are not stored on your device, thieves can‘t uncover your financial information. But always act swiftly when a device enabled with any form of payment goes missing for maximum oversight.
This covers Apple Pay setup basics to payment platform security and customization details. Follow along on your own iPhone any time you‘re ready to start enjoying Apple Pay benefits.
We expect Apple Pay to continue aggressive growth in transaction volume and retail penetration over the next 5 years. And the user experience will only get smoother thanks to constant Apple platform innovations.
So give contactless and in-app Apple Pay transactions a try to see firsthand how effortless and secure mobile payments can be thanks to pioneering technology. Just look for that familiar Apple Pay button or the universal contactless logo when shopping and give it a quick tap. Ditch the physical wallet for good!
