During the press event this afternoon in Cupertino, CA this afternoon, Apple introduced a new method making mobile payments at physical locations. Apple Pay is basically the next iteration of Passbook. It safely stores a user's credit card, gift card, store loyalty card, coupons and ticket information. Choosing which card of information to use is as easy as swiping through the options.
Apple has finally included Near Field Communication (NFC) in the new iPhone 6, iPhone 6 Plus and Apple Watch. Transactions are made by bringing the device close to an enabled card reader, similar to Google Wallet and other NFC payment methods. Apple, placing an added focus on security, requires payments to be confirmed as they are made. Luckily, Touch ID makes that as simple as placing one's thumb on the screen. With Apple Watch, you will need to press the button on the side twice before moving it close to the payment reader.
The best part of Apple Pay is that it will work without opening an app or waking up the device. It will also work in-app as a payment method and is compatible with American Express, Visa, and MasterCard. Apple has worked out agreements with a number of major retail outlets, restaurants, and venues–including Disney–which will accept payments made with Apple Pay. If you happen to lose your phone, it can be put into "Lost Mode" and make everything, including Apple Pay, inaccessible.
iPhone 5, 5c, and 5s owners can also utilize Apple Pay, but only if the phone is synced with an Apple Watch.
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