With the unveiling of Apple Inc (NASDAQ:AAPL)’s latest products, namely iPhone 6 and iPhone 6 Plus, the new era of being able to make payments via mobile devices has become a reality and is here to stay courtesy of support offered by entities like MasterCard Inc (NYSE:MA). If Apple Inc (NASDAQ:AAPL) is a leader in its segment of technology related gadgets, MasterCard Inc (NYSE:MA) is a well known name in the commercial sector wherein it enjoys a vast network for making and processing payments.
When pitched in together, the strength of the combination is best projected by MasterCard Inc (NYSE:MA)’s Ed McLaughlin’s words –
“Apple has a long tradition of introducing breakthrough products with features that really matter to people. Apple Pay, combined with MasterCard’s payments technology, gives consumers an easy, secure and private way to shop. We have been a pioneer of mobile commerce innovation for years – including the world’s first contactless and mobile payment solutions. We’re thrilled that MasterCard cardholders will soon be able to make payments from their iPhone 6, iPhone 6 Plus and Apple Watch, knowing that every purchase is secure and offers all the same guarantees and benefits they’ve come to expect from using their MasterCard.”
Integration of the two systems has been made possible thanks to MDES, meaning MasterCard Digital Enablement Service, a technology that enables a mobile device to make payments. For this system to operate seamlessly, participation from banks is a must and while Apple Inc (NASDAQ:AAPL) has mentioned names of banks, MasterCard Inc (NYSE:MA) is leaving no stone unturned in adding to the list.
Between them, both companies have expressed their intention of facilitating this new way of making payments in a secure atmosphere wherein everyone – namely consumers, merchants and companies – would stand to gain from the transaction. The difference from credit cards is the incorporation of chip-and-pin technology in place of magnets. The chip generates a single-use authorization code and the pin, which is unique for every purchase, will need to be filled in by the user.
So an individual who owns this latest model of Apple Inc (NASDAQ:AAPL) will be able to pay via credit/debit cards of MasterCard Inc (NYSE:MA) by simply holding his iPhone close to a contact-less reader. To authenticate the transaction, it is the Touch ID that would need to be pressed. Likewise, whoever wishes to make a purchase will need to go through authentication with their fingerprint or a pass-code and there is no need to enter the card number.
This article has ben written by Vinita Basu.