Using Near Field Technology, a chip that allows a user to ‘tap and go’, the new iPhone enables payments with a single touch. It can be used to pay online as well, in apps. It will also be available on the new announced Apple Watch.
Security was an issue that was strongly touched upon at the event. Instead of storing the credit card information, the technology communicates an encrypted placeholder ID to the store checkout system, which is then matched to the account information. Merchandisers don’t see the name or the credit card information of the purchaser.