Apple Said to Be Using Tokenization Technology to Secure Mobile Payments Service

Apple may be integrating tokenization technology in its forthcoming mobile payments solution, reports Bank Innovation. Citing sources close to the matter, the report notes that the company will look to utilize token technology to address security and fraud concerns as integrates the service with the iPhone 6 and iWatch.

Financial institutions — card issuers and networks — prefer token technology because it replaces primary account numbers, those 16-digit card numbers on the front of credit and debit cards. Instead, the tokenization technology uses complex codes that are easily transmittable over the air and between devices, but that are used only once, so even if they are intercepted, are of no use to fraudsters.

An Apple patent discussing token technology has also been discovered, as the application was granted last month and filed for in 2009. In its example, Apple discusses a token system as a method for two devices to communicate sensitive data with disposable, one-time use codes.

easypay_concept

EasyPay mobile payments concept by Ricardo Del Toro

The report also once again discusses the NFC capabilities in the iPhone 6 and iWatch, stating that chip-maker NXP will be rolling out NFC chips to the iWatch and the iPhone 6. Apple Stores and Apple retail partners are also said to be gearing up to utilize NFC technology, as a number of retail locations will be using the NFC-enabled Verifone MX 915 terminal.

Prior reports have stated that Apple's payment service will be supported by a number of credit card companies including Visa, MasterCard, and American Express. The company is also said to be partnering with a number of retailers for the service, including Walgreens, CVS, Nordstrom, and more.

Apple is expected to announce its mobile payments solution at this Tuesday's media event, which will likely be shown off alongside the iPhone 6 and iWatch.

Related Roundup: Apple Pay

Top Rated Comments

Michael Scrip Avatar
124 months ago


Apple can you please include the sears store. I shop a lot at sears.

Ah... so you're the one!

:D
Score: 19 Votes (Like | Disagree)
tattooedyuppie Avatar
124 months ago
1 more day... This is going to be epic on so many levels.
Score: 10 Votes (Like | Disagree)
bradl Avatar
124 months ago
Tokenization is one of the best ways to protect PCI data.

Prime example: PCI standards allows someone handling such data to only display the first six and last 4 digits of a PAN (your credit card) in their database. For a merchant to retrieve the full data for research (your full card number), the people holding the data would encrypt the middle digits of your PAN number, create a token, store it in a database with your encrypted card information.

The merchant then would be presented with a token. They submit the token, the entity holding the PCI data has their application check the token against what they have in their database. If they match, the people holding your data returns back the full card number to use. That way, at no point does either the holder or the merchant have all 16 digits of your credit card number.

I've maintained PCI databases, and it's one of the easiest, and secure ways to store your data. For Apple to be looking at this is a good thing, especially if rumors are true about using NFC in their next iPhone.

BL.
Score: 9 Votes (Like | Disagree)
Jacquesvw Avatar
124 months ago
.
Score: 6 Votes (Like | Disagree)
Kebabselector Avatar
124 months ago
I misread it and thought it was going to be a Hobbit based payment system, but that's Tolkienization.
Score: 5 Votes (Like | Disagree)
MentalFloss Avatar
124 months ago
Just to scare everyone, I could easily setup a capture at the fuel pump and grab your swipe. I'm curious on how 'they' can make this secure, possibly include a manual PIN?

You state that you have been writing token payment code for two years, yet you don't know how it can be secure? You mean you write code for a technology that you don't understand?

Wut?!
Score: 4 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
apple wallet drivers license feature

Apple Said iPhone Driver's Licenses Would Expand to These 8 U.S. States… Two Years Ago

Thursday March 14, 2024 7:33 am PDT by
In just four U.S. states, residents can add their driver's license or ID to the Apple Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports, businesses, and venues. Adoption of the feature has been slow since Apple first announced it in September 2021, with IDs in the Wallet app only available in Arizona,...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
OLED iPad Air

iPad Air Next on Apple's OLED Tablet Roadmap Following iPad Pro

Friday March 15, 2024 3:30 am PDT by
The iPad Air will be the next Apple tablet to adopt OLED display panel technology following its upcoming OLED iPad Pro models, according to an updated forecast from research firm Omdia (via The Elec). "In 2028, we expect the iPad Air to go OLED as well, with the iPad Air using single-stack and the iPad Pro using two-stack tandem OLEDs," said Omdia researcher Kang Min-soo, speaking on...
Walmart MacBook Air M1

Walmart Begins Selling MacBook Air With M1 Chip for $699 in U.S.

Friday March 15, 2024 6:57 am PDT by
Walmart today announced that it has started selling the MacBook Air with the M1 chip in the U.S., with pricing set at a very reasonable $699. The laptop can be ordered now on Walmart.com, and it will be available soon at select Walmart stores. This is the first time that customers can purchase a Mac that is sold directly by Walmart, the company said in a press release. Some other retailers...