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
90 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
90 months ago
1 more day... This is going to be epic on so many levels.
Score: 10 Votes (Like | Disagree)
bradl Avatar
90 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
90 months ago
.
Score: 6 Votes (Like | Disagree)
Kebabselector Avatar
90 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
90 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)

Top Stories

REC ASA CODE2016 20160601 205816 2745

Elon Musk Reportedly Demanded to Become Apple CEO as Part of Potential Tesla Acquisition [Update: Musk Denies]

Friday July 30, 2021 9:04 am PDT by
Tesla CEO Elon Musk reportedly once demanded that he be made Apple CEO in a brief discussion of a potential acquisition with Apple's current CEO, Tim Cook. The claim comes in a new book titled "Power Play: Tesla, Elon Musk and the Bet of the Century," as reviewed by The Los Angeles Times. According to the book, during a 2016 phone call between Musk and Cook that touched on the possibility of ...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
Apple watch series 5 new case material made of titanium 091019

Titanium Apple Watch Series 6 Models Currently Widely Unavailable

Sunday August 1, 2021 6:21 am PDT by
Models of the Apple Watch Series 6 with titanium cases part of the "Apple Watch Edition" collection is currently widely unavailable for pick-up in several of Apple's retail stores in the United States and is unavailable entirely for delivery in major markets. Noted by Bloomberg's Mark Gurman in the latest edition of his "Power On" newsletter, titanium models of the Apple Watch Series 6,...
ifixit iphone12 mini

Apple to Make Space for Larger Batteries in iPhones, iPads, and MacBooks By Adopting Slimmer Peripheral Chips

Monday August 2, 2021 2:12 am PDT by
For future iPhones, iPads, and MacBooks, Apple plans to use smaller internal components in an effort to increase the size of the device's battery, according to DigiTimes. Image Credit: iFixit Specifically, Apple plans to "significantly increase the adoption" of IPDs or integrated passive devices for the peripheral chips in its products. These news chips will be slimmer in size and allow for...
Flat 2021 MacBook Pro Mockup Feature

Unreleased Apple Macs and Apple Watches Listed in Eurasian Database Ahead of Fall Product Launches

Monday August 2, 2021 9:34 am PDT by
Apple is preparing for a slew of fall product launches according to new filings that showed up today in the Eurasian Economic Commission database. There are listings for new Mac and Apple Watch models, all of which have previously unknown model identifiers that indicate that they're upcoming devices. There are six new Apple Watch identifiers, including A2473, A2474, A2475, A2476, A2477, and...
a15 chip

iPhone 13 and Redesigned MacBook Pro Chip Production Hit With Gas Contamination

Friday July 30, 2021 5:44 am PDT by
The most important TSMC factory that manufactures Apple's chips destined for next-generation iPhone and Mac models has been hit by a gas contamination, according to Nikkei Asia. The factory, known as "Fab 18," is TSMC's most advanced chipmaking facility. TSMC is Apple's sole chip supplier, making all of the processors used in every Apple device with a custom silicon chip. Industry...
iPhone 13 Wi Fi 6E feature update

Wi-Fi 6E Explained: What It Could Mean for iPhone 13 and Beyond

Monday August 2, 2021 8:00 am PDT by
The iPhone 13 is widely expected to come with Wi-Fi 6E capabilities, and while it may seem rather nuanced to the average consumer, with only improved speeds and being "up to date" in the realm of Wi-Fi technology, it's actually a fairly significant improvement, laying the groundwork for much of what we know the future holds. To truly understand Wi-Fi 6E, MacRumors sat down for an exclusive...
youtube premium lite

YouTube Tests Cheaper 'Premium Lite' Subscription for Ad-Free Viewing

Monday August 2, 2021 3:22 am PDT by
YouTube is piloting a new cheaper subscription tier in Europe called "Premium Lite," which offers ad-free viewing minus YouTube Premium's other features. First spotted by a user on ResetEra and subsequently confirmed by Google, the "Lite" plan means users who aren't interested in offline downloads or background playback can still enjoy YouTube videos on web and mobile app without being...
iPhone 13 Always On Feature

iPhone 13 to Bring Over a Major Feature From the Apple Watch

Wednesday July 28, 2021 2:21 am PDT by
Apple's upcoming iPhone 13 lineup will feature an always-on display akin to the Apple Watch Series 5 and Series 6, according to recent reports. In his weekly Power On newsletter, Bloomberg journalist Mark Gurman, who often reveals accurate insights into Apple's plans, said that the iPhone 13 may feature an Apple Watch-inspired always-on mode. The Apple Watch Series 5 and Apple Watch...
COVID19 Digital Wallet Apple Wallet

Australian Government Now Offering COVID-19 Digital Vaccination Certificates for Apple Wallet

Monday August 2, 2021 12:04 am PDT by
The Australian government has introduced support for adding COVID-19 vaccination digital certificates to Apple Wallet via the Express Plus Medicare app on iOS. Image credit: Tap Down Under As spotted by Tap Down Under, users who have received two doses of either the AstraZeneca or Pfizer vaccine now have access to the digital certificate through their Medicare online account or via the Medica...