Three Ways Apple Pay and Tokenization Are Changing How You'll Shop in the Future
Mobile payment systems, also known as “mobile wallets,” are poised to become the next big thing in payment technology. These systems enable you to pay for goods and services via an app on your mobile phone, rather than digging in your purse or wallet for cash and credit cards. The advent of Apple Pay and similar systems represents a huge leap forward in payment convenience and security. Here are some ways mobile payment systems will change the way you shop:
Faster checkout. At brick-and-mortar stores, transit centers, and other physical locations, paying for something will be as simple as waving your phone in front of a special reader. Using a wireless signal, the system authenticates your identity and finalizes the transaction. The whole process is completed in seconds and you’re on your way.
Better security. Unlike some other online wallets, Apple Pay does not store your credit card numbers on your device or on Apple’s servers. Apple Pay uses “tokenization,” which means that each of your credit cards is mapped to a device-specific “token,” or string of numbers. To make a purchase, Apple Pay sends the token to the credit card company, which identifies your credit card and processes the transaction. By not sending your credit card number across the internet, and not storing the number on third-party servers, there is less chance of having it stolen.
More convenient online purchases too. Using your device to make online and in-app purchases will be simpler than ever. Apple Pay (or a similar mobile wallet solution) will be one of the payment options for every purchase. Just tap it and you’re done.
The added speed, security, and convenience of new mobile wallets such as Apple Pay will take at least some of the hassle and worry out of both physical and online shopping.