Apple’s new mobile payments system will use tokenization as well as contactless payment, 9to5 Mac reported, based on the new point-of-sale terminals installed in Apple’s own stores.
Tokenization eliminates the need to send payment card numbers between a point-of-sale terminal and a merchant’s transaction systems. The card details are replaced by one-time-use numerical tokens, making it much harder for card numbers to be stolen.
Apple Stores have installed VeriFone MX 915 PIN pads, which specifically include support for both near field communications (NFC) transactions and tokenization, the online Mac publication said, citing a report by Bank Innovation.
While many PIN pads support NFC, only a limited number support tokenization, which would explain why McDonald’s has installed new point-of-sale systems in all its U.S. stores and retrained associates to use them on the run-up to Apple’s expected mobile-wallet announcement today (Sept. 9).
Bloomingdale’s also has installed MX 915s, and Nordstrom reportedly has recently upgraded its PIN pads with Apple-specified hardware. Other major retail chains reported to be on board for the new system include Walgreens and CVS.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More