"Why Apple Pay may be more exciting than the Apple Watch"
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CNET News Video
CNET News Video
Why Apple Pay may be more exciting than the Apple Watch
Apple's event was filled with headline grabbing hardware but it's new mobile payment service ApplePay may ultimately have the most impact on our daily lives.
Every day between credit and debit.
We spend $12 billion.
You can't see it, but encased inside the iPhone 6 and 6 plus is a near field communications, or NFC antenna.
And an NFC chip.
The new feature, along with a passbook app which stores credit cards, turns Apple devices into mobile wallets.
To ensure security, Apple is incorporating Touch ID, the fingerprint authorization feature, and tokenization.
It's basically generating a new 16 digit number, in lieu of the actual number that you have on your credit card, so that, that way when, that's the information that gets transferred to a merchant.
The expectation is that Apple will succeed while other efforts like Google Wallet and Softcard.
Haven't taken off.
NFC technology just isn't being adopted by consumers.
I mean, it goes back to the whole, like, merchants aren't accepting the, those technologies and customers don't have anywhere to go to use them.
But Apple has an advantage.
It's brand is basically that, you know, our technology works.
They sit around, they wait, they kind of look at all this emerging stuff, and they pick out what actually will work well for a consumer.
And that's something merchants will pay attention to.
They know that when Apple moves into a space, consumers will generally follow.
Apple has a solid start partnering with retailers like McDonald's and Macy's.
Plenty of places to swipe and shop.
In San Francisco I'm Sumi Das, CNET.com, CBS News.
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