Apple Pay is a mobile payment system that is in use by an estimated 45.4 million users in the US. An article from Oberlo forecasts that the number will grow to an estimated 56.7 million in 2026.
Key Takeaways
- Apple Pay is certainly safer than cash and it has more safety features than credit cards.
- Some security features, like two-factor identification, are optional.
- A complicated passcode is still a good idea.
As for whether it's safe or not, Apple Pay is certainly safer to use than cash. And, it should be safer to use than plastic, as long as the account owner enables its full safety features.
Apple Pay Safety Features
Apple Pay can be used to complete a transaction at any merchant, web retailer, or app that accepts it. In addition, it allows users to send and receive money from other users via messaging.
Each transaction incorporates a number of security measures:
- It uses near-field communication (NFC), a chip-based technology that communicates with a card reader without the need for contact with it. The card stays in your wallet.
- In order to finalize transactions, the user can employ two-factor identification, including fingertip or face ID as well as a passcode. Use of fingertip or face ID is optional.
- Apple advises its customers to choose a complex passcode. It can't stop you from using your cat's name as a passcode, so this security tip, like two-factor identification, is voluntary.
- The merchant is never given your original card account number. (Apple doesn't have access to it either.)
- A tokenization method is used to process transactions. That is, a unique encrypted code is created for one-time use. That code, not your account number, is transmitted to authorize the transaction.
- If the user ever suspects that the account has become insecure, Apple Pay can be disabled through the iCloud system.
Apple promises never to share card information across its cloud. While this means users have to manually enter their card information into each device, it adds to the security of the service.
What Could Go Wrong?
Needless to say, Apple Pay and its competitors face a constant assault from hackers eager to scale its security walls. So far, these attempts appear to have uncovered vulnerabilities created by users but not by Apple.
One report indicates that wi-fi hotspots may be used to intercept and reuse encrypted transaction data.
One unconfirmed report claims that Apply Pay could make it easier to exploit stolen identities. That is, a criminal could simply load stolen information, including credit card numbers, into an iPhone and go on a shopping spree. (This actually would be the responsibility of the bank that issued the stolen card, not Apple.)
A White Hat Attack
Another unconfirmed report claims that "white hat" hackers were able to infect a device with malware and then intercept payment data as it was entered by an iPhone user and sent to the Apple server. This could only be done on a "jailbroken" iPhone, meaning one with software that had been tampered with.
Yet another report claims that users of wi-fi hotspots are vulnerable to hackers who can intercept and reuse the cryptogram that is used to enable an Apple Pay transaction. Yes, the cryptogram is supposed to be usable only once, but apparently some merchants allow them to be used more than once. Another example of an error that exploits imperfect use of the Apple Pay system.
FAQs
Apple Pay is safer than using a physical credit, debit, or prepaid card. Face ID, Touch ID, or your passcode is required for purchases on your iPhone, Apple Watch, Mac, or iPad. Your card number and identity aren't shared with merchants, and your actual card numbers aren't stored on your device or on Apple servers.
Is there any risk with Apple Pay? ›
Apple Pay is designed with your security and privacy in mind, making it a simpler and more secure way to pay than using your physical credit, debit, and prepaid cards. Apple Pay uses security features built-in to the hardware and software of your device to help protect your transactions.
What are the disadvantages of Apple Pay? ›
Cons of Apple Pay
Apple Pay is not accepted at all retailers and not compatible with all banks or card issuers. Backup may be required, just in case. Apple Pay only works if your phone does. You may still need to carry a physical credit card as a backup in case your battery dies or you misplace your phone.
Is Apple Pay secure from hackers? ›
Apple Pay only transmits encrypted data between merchant and bank and back to merchant. Neither your iPhone nor Apple has the key to decrypt the data. Only your bank has the key to decrypt the data.
Can card details be stolen from Apple Pay? ›
Apple Pay is a very secure way to make payments. This is because your card numbers are not stored on your device, and are never shared by Apple Pay, or sent with your payment. Instead, Apple Pay gives you a unique Device Account Number, that's encrypted and stored in a secure part of your iPhone, iPad or Apple Watch.
Is Apple Pay sketchy? ›
Apple Pay is even safer than using a physical credit, debit or prepaid card thanks to features like Face and Touch ID and your passcode on your iPhone, Apple Watch, Mac, or iPad.
Does Apple Pay charge a fee? ›
Does it cost extra to use Apple Pay? No. Apple does not charge any fees when you pay with Apple Pay — in stores, online, or in apps.
What is the Apple Pay controversy? ›
Regulators had accused Apple in 2022 of abusing its dominant position by limiting access to its mobile payment technology. Apple responded by proposing in January to allow third-party mobile wallet and payment service providers access to the contactless payment function in its iOS operating system.
What is more secure, PayPal or Apple Pay? ›
In comparison to the other options mentioned here, Apple's really played up the ease of use and the security benefits the service offers. No one sees your card number during a transaction; Apple doesn't keep a record of your purchases; and purchases require the use of Touch ID – a fingerprint identity sensor.
Is there a problem with Apple Pay? ›
User reports indicate no current problems at Apple Pay.
Apple Pay provides security
So even if your phone is stolen, no one else can use your Apple Pay to buy something. On the other hand, a thief could easily use your stolen credit card at a store that doesn't match IDs and cards.
Can someone use Apple Pay if they steal your iPhone? ›
When you mark your iPhone or iPad as lost, your device is put in Lost Mode — it's locked with a passcode, payment cards and passes that you use with Apple Pay are suspended, and you can display a phone number and message for someone who finds your device.
Is Zelle or Apple Pay better? ›
Clark's Take on Whether Apple Pay Is a Safe Alternative to Zelle. Clark says: “It's a different kind of tool, but Apple Pay is a well-thought-out safe alternative.” It's no wonder that a user may be “freaked out” using Zelle. Inside the Zelle app, there is no way to request a refund.
Can card skimmers steal from Apple Pay? ›
While card skimming only works by swiping data from the magnetic strip on your card, there are other ways card information can be stolen. Apple Pay takes the extra step of encrypting the data so that your actual card information isn't even in your iCloud.
What is the difference between Apple Pay and Apple wallet? ›
What is the difference between Apple Pay and Apple Wallet? Apple Pay is the safe way to pay and make secure purchases in stores, in apps, and on the web. Apple Wallet is the place where you store your credit or debit cards so you can use them with Apple Pay.
Does Apple Pay expose your credit card number? ›
When you use Apple Pay in apps and on the web, information necessary to process the payment is shared with the app or website. Your actual card number isn't shared with the merchant.
Is Apple Pay made to be secure? ›
Your physical card details are your business. And Apple Pay keeps those card details — card number, expiration date, and CVV number — hidden. Making a purchase shouldn't expose your sensitive card details.
Is Apple Pay safe from skimmers? ›
An alternative to swiping your card is paying by mobile wallet including Apple Pay, Samsung Pay, or Google Pay. This form of payment is secure because your credit card information is tokenized and rendered useless if a thief where to get a hold of it. Pay inside.
Is Apple Pay or PayPal safer? ›
Is Apple Pay protected like PayPal? Though Apple Pay is highly secure, you have less purchase protection than you would with PayPal.
