Apple’s New Mobile Wallet Lets You Pay With a Tap of Your iPhone

Apple Pay will be accepted at more than 220,000 merchants. Screenshot: WIRED

Apple’s new payment system Apple Pay lets people pay merchants using their iPhones. All of the major credit cards—American Express, MasterCard, and Visa—are on board, and will be accepted by more than 220,000 merchants at launch.

Using Apple Pay couldn’t be easier—simply tap your iPhone at a payment terminal. Apple CEO Tim Cook conceded that Apple isn’t the first to attempt replacing the card-based payment system we’ve known for decades, but so far no one’s had much luck.

“People have dreamed of replacing these for years,” Cook said. “But most have been a disappointment or not yet worked well enough for mainstream adoption.”

Instead of a card, Apple Pay uses the iPhone 6, the larger iPhone 6 Plus and the Apple Watch announced today. Want to make a payment? Tap your phone at a retailer’s payment terminal. The phone uses a combination of NFC, Touch ID, and a secure chip called the Secure Element to complete the payment. To add a card, simply snap a pic of it using the iPhone’s camera. After verifying with your bank, the card is added to Passbook. Apple doesn’t store the number, or transfer it to the merchant during a transaction. Instead, it has a device number that’s relayed during payments along with a dynamic security code. If you lose your iPhone, you can use Find My iPhone to suspend payments for that device without having to cancel your credit card.

Apple says that the banks included in Apple Pay make up 83 percent of all credit card purchases in the U.S., and it will be accepted by more than 220,000 retailers. Apple specifically called out Macy’s, Bloomingdales, Walgreens, Staples, McDonalds, and Whole Foods.