Overview of Apple pay technology and its components
Online payments make everyone life easier, anyone can use it anywhere anytime to do online shopping. Due to the new invention of science, smartphone became the first choice of people which provide new functions like mobile payment through Apple pay Android pay. So, Apple Pay is one of them secure method of payment because it comes with new security techniques. Furthermore, through apply pay, the receiver will not receive the customer bank information. So, consumers feel safe to do payment via apple pay. Furthermore, people can download the app from the apple store and connect through card details with banks. They can use it anywhere. Moreover, they do not need to worry about the loss or damage of card [1].NFC technology is the root of apple pay, which allows the mobile phone to do payments. It is a wireless technology which allows two terminals to communicate with each other. According to Loup ventures about 252 million of iPhone users across the world use Apple Pay Technology. Munster has highlighted that Apply Pay transactions in the next one year will jump by 200 percent [2].
- How does Apple technology work?
- How can one use Apple technology?
- How secure is the technology secure?
To answer these three questions three major areas will be highlighted. An overview of Apple pay technology, its components and issues that arises due to the usage of the technology.
In future, the traditional payment will be replaced by E payment or Mobile payment. It is very vital to protect the payment or the personal information. Its automatically save the digital receipt of shopping in-app and send a notification message to the user. The main purpose to write this report is to make secure our present or future. There is also some issue, what kind of attention we need to focus in future.
Basically, Apple Pay is an electronic payment that is required while shopping from the digital wallet. The users of the technology needs the new version of the electronic device which comes with NFC chips like as iPhone 6, 6 plus, above series iPhones and Apple watch, the latest model of iPad pro. Apple pay works at checkout on terminals [1]. While using it we just need to set default pin to verify the account. Customer need to keep near the reader device at checkout and most important is keep the figure at home button to complete their transaction. This process only needs 10 seconds. Then it creates the digital receipts with Unique ID.
Emerging technology of NFC and its modes of operation
Figure 1: Paying with contactless terminal [2]
Secure Element: In these days apple industry using certified chips which are designed based on a Java platform, which is good for electronic payment.
NFC Controller: The controller controls the communication between the NFC protocol or router and the software processor of the secure element.
Wallet: Basically, it is designed for credit and debit card, store cards and rewards. The user can check the personal information about cards. It also stores the digital receipts of payment with a unique id.
Secure Enclave: it manages the authentication process on Apple devices and allows the transaction to approve.
For example, if the customers want to do payment through watch then it should unlock, and user needs to click twice on the side button. Double click process authentication passes the information to the secure element processor. Then payment process will proceed.
Apple pay servers: it controls the information about the bank details of the user in the wallet. It is used as the protocol between two devices to communicate with each other [3].
In this section, I will discuss what technologies are used for while doing payment, how to get access while entering into the secure building as an identification.
2.1 NFC: It stands for Near field Communication which acts as Bluetooth in between two devices. This technology is similar to the (RFID) Radio frequency Identification. It is used to trace the devices or product in the market. In general terms, it is short range technology. (Robert 2013, cited 25.20.2016) NFC device works only 4cm of the radius and one device adopts that waves and complete the transaction. We can say it is a 2-way communication method, one device act as a reader and another device as a writer.
When two devices (Figure 2) reach close to each other than one device produces electromagnetic wave and other connect it and transfer with 13.56-megahertz frequency each other at 212, 424 kilobits per second. This is a really too fast method to transfer any data like music, contact information between each other.
Figure 2: Electromagnetic field [4]
peer-to-peer mode: it is a protocol of two NFC devices to talk between each other like sending pictures, songs. Active mode will be the sender and the passive device will be a reader.
Read/Write mode: it is a one-way communication process. The active device needs to contact with the passive device to receive the data. This act as NFC Tag.
Security implications of using Apple Pay and biometric authentication feature
Card emulation: It authorizes the NFC devices to use like same as a smart card in the public transport.
We can use any NFC chip device like a watch, ring, bracelet or mobile phone to do payment, The NFC controller will change into card emulation mode, so the NFC controller will not able to do any transaction. It just acts as a medium between two devices. Then it sends a request to the bank to do the transaction in real time.
It is launched in 2014 on iPhone 6 and 6 Plus. When customer want to use the device at any reader device then user need to allow transaction through biometric fingerprint. The payment deducts through another separate chip that is secure element.
NFC technique make customers life easier to share any kind of information between one device to another device without fear of lose.
Lack of usability: Some people do not believe to do payment from apple pay due to lack of knowledge or lack of understanding of technical knowledge. some of them are not aware of the English language yet it is the language that has been employed by Apple. This is one of the reasons as to why lots of people still prefer payment from card [5].
Lack of security: online payment over the internet is not fully secure because the hackers can easily steal the information of the customers and steal money as well. While shopping customers need to do payment through apple pay. So, the retailer can get the information about name, sir name, address. Sometimes, a hacker can hack the information through name and contact number. Card data security is also of great concern. The common arena that surrounds card security includes; maintaining of an information security policy and the implementation of a strong access control measures. Protecting of card-holder data is also of major concern.
Lack of trust: we are listening the everyday story of fraud and misuse of payment. Some customers do not believe in electronic payment due to risk. This results to lack of trust of E-payment technology.
Cross-border transactions: Even though E-payment such as Apple pay plays an important role in global trade, at times cross-border transactions using E-payment can be expensive, slow, and inefficient. Some of the national banking infrastructures are unable to handle some of the current developing technologies such as Apple pay
Apple pay is designed to provide security mechanisms, but it does not provide private and legal security. Apple devices do not need to store the information about the bank details of customers the application always use the different identification number. This unique identification number is fully different than credit and debit card details. The application device always asks authentication from user to store the information about payment method details.
Usability, security, trust, and cross-border transaction concerns associated with E-payment technologies
Biometric authentication is the emerging technology in E-payment system. Apply pay require biometric authentication means; Touch ID to do payment process. In general life, we are leaving a fingerprint in many places. An attacker can use Apple consumers’ fingerprints anywhere if Apple’s customer loses their phone. The attacker can then use the consumer’s iphone to create fake fingerprints anywhere to unlock the device and later pay for their shopping through apple pay.
Another security issue related to Apple pay is the issue of credit cards. Some computer security professionals have indicated that it is very easy to come up with credit card numbers used in Apple pay if the attacker is aware which end if the dark web to look in. According to Forbes, the going rate of credit card is said to the range of $2. In addition, thieves can enter a stolen card into the Apple pay meaning that a thief can go into a store and purchase an item.
The main purpose of electronic payment is saving the time and to so secure payment. Due to NFC technology through Apple pay, the merchant cannot able to receive the card details. The retailer can use only the location of shopping, name and email.
One of the social issues that arise with Apple pay technology is the when the battery runs out of power. This means that customers are unable to carry out the day to day business. It is a problem that the company that owns iPhone 6 knows too well. This means that Apple pay is not a viable solution and there was no need for the company to eliminate credit cards. In addition, the technology requires one to buy a new iPad or iPhone over the current Android which in fact uses Google wallet which is one of the competing partner [6].
The implementation of Apple pay technology effect the international business scenario as well. Every organization have to pay money for buying goods. So, some of organization has changed their payment system because they are not using apply pay method. On other side organization need to buy apple devise or buy payment readable devices. They have to spend too much money on it.
According to two professors from Harvard Business School, they are of the view that the Cupertino Company will have a challenge when coming up with a compelling message of driving their sales of service which allows the company to pay their retail counter with only a swipe of an iPhone. Benjamin Edelman, who is an associate professor was of the view that Apple will be required to work ahead in convincing potentially and thoughtful organizational customers. This is so because the current technology is working properly and customers are not complaining. In fact, most of the customers have already accepted the card technology as it gives an addition of one to two percent off the purchase price. This means that the organization has what Harvard business professionals call chicken and egg game to solve; Apple consumers will not use the Apple pay service it is in use in a number of stores. This means that the organization needs to first convince its Merchant to adopt the technology so that their consumers can follow [7].
The political issue arise due to presence of technology has been increasing in these days. Apple industry gain new technologies and also gain political power from it. NFC technology promote Apple pay which is using everywhere to buy or sell something through iPhone as well as watches. Apple industry is thinking new technology like how the customers get more addicted of apple devise, people just attract toward iPhone not an android device.
Apple pay is can be more useful in the eco system. According to Irwin, shopping through credit card is not bad thing but most people keep it as backup everywhere. In these days, the apple pay is the advance effective way to do payment [8].
Apple organization need to focus on IOS design software which comes with vulnerabilities in these days. So, the latest version of IOS software is coming day by day. Due to those vulnerabilities, a hacker can easily hack that software to collect the personal information about customers.
Conclusion
From this report, it is evident that Apple Pay technology is booming. In fact, almost a third of iPhone users use phones as their wallet. With increasing usage of the technology, it has come with some issues. This report has classified the problems into three which are social issues, business issues, and political issues. Social issues that come with Apple technology are related to security. As we can see from the report, Apple pay technology is not secure. The business issue that has been highlighted in the report is the issue of cost and chicken and game issue. Lastly, from this report, it is evident that Apple pay technology has resulted in the company gaining political power.
References
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Minihane, “Apple Pay use is booming,” uSwitch Mobiles, 10th August 2018. [Online]. Available: https://www.uswitch.com/mobiles/news/2018/08/apple-pay-use-booming-claims-new-report/. [Accessed 14th September 2018].
N.K.Ratha, J. connell and S.Pankanti, “Big Data Approach to bimetric-based identity analytics,” IBM journal of Researcg and Development , vol. 59, no. 2, 2015.
C. Xinru, “INFORMATION SECURITY OF APPLE PAY,” Oulu University of Applied Sciences, 2016.
S. Nambiar, CT.LU, Connell and L.RLiang, “Analysis of Payment transaction security in mobile commerce,” Informationa Reuse and Intergration: Proceedings of the 2004 IEEE International Confrence , pp. 475-480, 2004.
M. Swider, “Apple Pay,” Techradar, 20 November 2015. [Online]. Available: https://www.techradar.com/reviews/phones/mobile-phone-accessories/apple-pay-1264966/review/2. [Accessed 14th September 2018].
D. Gerdeman, “Apple Pay’s Technology Adoption Problem,” Havard Business School, 14th October 2014. [Online]. Available: https://hbswk.hbs.edu/item/apple-pays-technology-adoption-problem. [Accessed 14th September 2018].
What’s the problem for which Apple Pay is the solution?,” The Los Angeles Times , 10 September 2014. [Online]. Available: https://www.latimes.com/business/hiltzik/la-fi-mh-whats-the-problem-20140910-column.html#%20irwin. [Accessed 12th September 2018].
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