• Friday, May 24, 2024
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BusinessDay

Visa, Apple partner to kick off new era of mobile payments

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Visa Incorporated, a global leader in payments, has entered into a partnership with Apple Incorporated to support consumer payments with the new iPhone 6 and other Apple devices through a new capability called Visa Token Service.

The service, which facilitates secure consumer payments with new Apple devices, is to be available to all United States participating financial institutions starting in the fourth quarter of 2014 before being made available in other parts of the world.

With the new service, Visa customers will be able to add Visa debit and credit cards to Apple Pay, Apple’s new payment service, and enable their customers to make easy and secure purchases at select US merchants both in stores and in apps.

Visa Token Service technology works by replacing sensitive payment account information found on plastic cards with a digital account number or “token” that can be safely stored on mobile devices and used for in-store and in-app purchases.  Visa plans to roll out the service to financial institutions in phases – initially supporting early participants in the Apple Pay launch, and then extending the service availability to all of its US clients.

Speaking on the innovation Charlie Scharf, CEO, Visa Inc, said “Combining the trust, scale and security of Visa payments with Apple Pay will accelerate adoption of mobile payments.

“We said from the beginning that token services would provide great new consumer and merchant experiences, and you’re seeing it today in our efforts with Apple, and there’s more to come.”

Apple Pay allows customers to make purchases in some of the most highly visited stores and within apps on the App Store with just the touch of a finger, using the new iPhone 6 and other Apple devices. Visa account holders will continue to receive all of the rewards, benefits and security offered by Visa credit and debit cards.

By enabling Visa account holders to also make purchases in store and in app with their new iPhone 6 and other Apple devices, consumers will now have a seamless experience with their preferred form of payment.

“The combination of new digital experiences from Apple with new network capabilities from Visa provides for great payment experiences and enhanced security for millions of Visa account holders, merchants and financial institutions,” said Scharf.

OLUSEGUN ABISOYE