About Me

I ramble about a number of things - but travel experiences, movies and music feature prominently. See my label cloud for a better idea. All comnments and opinions on this blog are my own, and do not in any way reflect the opinions/position of my employer (past/current/future).

10 September 2014

Initial Thoughts on Apple Pay

There is not much detail available on Apple Pay, announced at Apple's keynote yesterday - but my first thought, was that it resembles an update of Secure Electronic Transaction (SET). Like Apple Pay, SET theoretically allowed for a system where a payment transaction could be conducted without the merchant knowing the payment details and the bank knowing what was purchased. SET and other token based systems (such as a credential based payment system I developed in my PhD) haven't really taken off - although one can argue that Bitcoin is also an evolution of such a system.

The advantage Apple Pay does have, over all others before it, is the massive install base of iPhones and the Apple brand. As long as Apple itself does not fall prey to payment card breaches (and Apple Pay's design of keeping card data on the phone itself, mitigates this risk); Apple should have better success compared to previous attempts. Furthermore, if Apple Pay does work, extending the service to include non-credit card type transactions - such as integration with bank accounts - should not be a challenge either.

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