Apple Pay just killed your wallet

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Apple's partners went to extremes to keep news of Cupertino's mobile payments entry quiet.
Apple's partners went to extremes to keep news of Cupertino's mobile payments entry quiet.

The new iPhone 6 and iPhone 6 Plus have bigger screens, badder cameras and you can use them in place of your wallet.

Apple just took the wraps off Apple Pay, its much-rumored mobile payments service. CEO Tim Cook is so excited about it that he looped the demo over and over during the keynote. It’s being touted as an “easy, secure and private” way to get your caffe latte on the run.

One thing’s for sure: this is a massive shift in the payments industry.

Apple’s new phones use NFC to wirelessly pay using the credit or debit card on file from your iTunes account.

Apple managed to line up all the major banks and credit card companies and retailers including Bloomingdale’s, Disney Store and Walt Disney World Resort, Duane Reade, Macy’s, McDonald’s, Sephora, Staples, Subway, Walgreens and Whole Foods Market.

You’ll also be able to whip out your phone to pay at an additional 220,000 merchants across the U.S. Apps like Uber and OpenTable will work also directly with Apple Pay. And it will integrate with the Apple Watch, too, so soon you’ll be able to leave the house with just your keys and watch.

Eddy Cue launches Apple Pay. Photo: Roberto Baldwin/The Next Web.
Eddy Cue launches Apple Pay. Photo: Roberto Baldwin/The Next Web.

Perhaps mindful of skeptics after the recent iCloud security debacle, Apple was careful to stress how secure and safe the system is.

“Security and privacy is at the core of Apple Pay. When you’re using Apple Pay in a store, restaurant or other merchant, cashiers will no longer see your name, credit card number or security code, helping to reduce the potential for fraud,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “Apple doesn’t collect your purchase history, so we don’t know what you bought, where you bought it or how much you paid for it. And if your iPhone is lost or stolen, you can use Find My iPhone to quickly suspend payments from that device.”

Touch ID is used to authenticate and there’s a new “Secure Element” in the iPhone to store your financial data. Financial credentials are randomized for each transaction, so identity theft is basically impossible, Apple says.

Apple Pay APIs will be available to developers in iOS 8, so they’ll be able to sell you plushy Flappy Bird dolls through their apps on iPhone 6 and iPhone 6 Plus.

Starting in October, with iPhone 6 and iPhone 6 Plus, Apple Pay will be available in the U.S. as a free update to iOS 8.