Apple may be using tokenization to secure transactions in its upcoming mobile payments solution, reports Bank Innovation. The report, citing the ever-popular “sources close to the matter,” says the company is looking to token technology to help them harden the system against security and fraud concerns.
Bank Innovation, via MacRumors:
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.
In a patent – filed for in 2009, and granted just last month – Apple covers the use of a disposable token system as a way for two devices to communicate sensitive data, via one-time use codes.
The report also makes mention of the NFC capabilities reportedly built-in the iPhone 6 and iWatch. Apple Stores and Apple retail partners, which reportedly include Walgreens, CVS, Nordstrom, and more, will be using the NFC-enabled Verifone MX 915 terminal to complete payments. The service will reportedly be supported by numerous credit card companies, including American Express, MasterCard, and Visa.
Apple’s event at the Flint Center in Cupertino, CA, will kick off on Tuesday at 10AM Pacific, 1PM Eastern Time. The company is expected to debut its next-generation iPhone(s) at the event, and will also likely show of its wearable device, the “iWatch.” As usual, MacTrast will be covering the event as it happens. Be there, or be square.
