What’s Apple Pay?

Apple rolls out its e-wallet system - Apple Pay
Apple rolls out its e-wallet system – Apple Pay

Apple Inc. unveiled its new mobile app payment service called Apple Pay on Monday.

The new e-wallet system is available on its new iPhones — iPhone 6 and 6 Plus. Apple Pay is quite easy to set up, so hundreds of millions of users can simply add their credit or debit card on file from their iTunes Store account. Apple Pay will also work with the newly announced Apple Watch, extending Apple Pay to over 200 million owners of iPhone 5, iPhone 5c and iPhone 5s worldwide.

Apple Pay supports credit and debit cards from the three major payment networks, American Express, MasterCard and Visa, issued by the most popular banks including Bank of America, Capital One Bank, Chase, Citi and Wells Fargo, representing 83% of credit card purchase volume in the US.

In addition to the 258 Apple retail stores in the U.S., some of the nation’s leading retailers that will support Apple Pay include Bloomingdale’s, Disney Store and Walt Disney World Resort, Duane Reade, Macy’s, McDonald’s, Sephora, Staples, Subway, Walgreens and Whole Foods Market. Apple Watch will also work at the over 220,000 merchant locations across the U.S. that have contactless payment enabled. Apple Pay is also able to make purchases through apps in the App Store.

“We’re providing our customers with tools to make their financial lives better, including our 30 million digital banking customers,” said Brian Moynihan, CEO of Bank of America. “For them, better means simple and convenient. Apple Pay is another exciting move in that direction.”

“Apple Pay is the kind of innovative thinking that brings the worlds of online and offline commerce closer together,” said Ken Chenault, CEO of American Express. “We’re excited to work with Apple to offer Card Members and merchants a simple and secure way to make purchases in stores and on apps.”

Apple, however, has not yet finalized retail details for Canada. More information will be available over the next couple of weeks.