For the past few years, companies have been bombarded with security issues in regards to the payments industry.
Big retail chains such as Target and Home Depot were some of the biggest victims of a massive hacking scandal. As a result, sensitive information was stolen and illegally used by hackers to funnel money from customers to themselves.
This raised many eyebrows throughout the world and sparked fear in both retailers and consumers alike. Luckily, large tech companies such as Apple have been developing alternative solutions to prevent further hacks and theft in the payments industry.
Here’s how their new payment system is making the world of retail safer:
1. Apple Pay encrypts payment data so no one can skim it.
Conventional credit/debit cards leave a trail of breadcrumbs when used at a retail POS terminal. From the name to the account number, it’s all sent to a database. This can be frightening as your account information is susceptible to being phished and hacked, just like what happened at Home Depot and Target.
Apple Pay instead accesses your credit/debit card through the form of NFC (Near Field Communication), which is essentially a radio frequency that gets recognized by a card reader.
The way Apple Pay then processes credit/debit card information is very simple. The software stores the information into the Apple passbook (which is a folder that also holds your boarding tickets, coupons, and more on Apple devices). From there, Apple will use an encryption code to display a unique number versus displaying the actual account number found on the credit and/or debit card when checking out. Apple never stores the unique number on their server to ensure that specific transactions can’t be linked back to the buyer.
2. Apple makes it easy to prevent physical thefts.
But you may be wondering what might occur if someone got a hold of your mobile device that’s synced to Apple Pay. For one, you can access your Find my iPhone app and put your device on ‘Lost Mode’ which suspends your Apple Pay account. You can also choose to completely wipe the mobile device if needed through the app. This will guarantee that any sensitive information left on the device can’t be accessed. But the biggest safety for Apple Pay is the biometric system that scans the phone owner’s fingerprints. This means that unless someone got a hold of your blood pumping fingers, they won’t be able to use your Apple Pay. No more worrying about your kids taking your credit cards!
3. Apple Pay allows for a better omnichannel retail experience.
Apple Pay allows for a seamless, easy experience for customers, no matter where they choose to interact with your retail brand. It’s a quick way to pay in person as there’s no need to pull out your wallet, shuffle through cards, and then hand over your card to someone who could steal the information. Additionally, it makes it very simple to make online and app purchases.
Apple Pay ready POS system
Currently, there are only a few point-of-sale providers that are capable of handling Apple Pay, like iConnect POS.
While there are a lot of flaws in the payments industry today, lurking around the corner are changes that’ll ensure financial protection.
Have you tried incorporating Apple Pay in your business? Leave your experiences in the comments!
Header by Abby Kahler
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