For Those of You Who May be Wondering About Apple Pay

What makes Apple Pay revolutionary? How is it different than Google Wallet/PayPal?
Well, Apple Pay is NOTHING like google wallet. The iPhone 6 has a piece of hardware that stores your payment card info encrypted. Your bank has to be able to process Apple Pay payments because, when you pay with your phone, that security chip in the phone generates a one-time use token, sends that token via NFC to the Apple Pay enabled point of sale. The point of sale sends that token to the merchants payment gateway which sends it to your bank. Your bank decrypts the token into your payment information. From there, it is a normal payment.
So, it operates a little like public-private key encryption. Your bank holds the private key. The security chip holds the bank’s public key. ONLY the bank can decrypt the information and you have your own public key. But, more than that, your fingerprint (more biometrics coming later) is the password (the salt in encryption terms) to unlock that public key on the device.
This means, if you lose your phone, you simply deactivate the public key on the phone with find my iPhone.
Google Wallet works like paypal. It fronts the real payment info with a pseudo account which can still be stolen and used without authorization.

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