Apple Pay

Apple Pay is Apple's own payment system. The service, announced in October 2014, allows you to use the iPhone and Apple Watch to make contactless payments (using NFC technology) in-store purchases using mobile devices instead of credit cards. To pay for the purchase, you need to bring your smartphone or smartwatch to the PayPass terminal, pass fingerprint identification. Based on the technology of scanning the fingerprints of the owner of Touch ID devices, it is designed to protect transactions with specially generated code.

2022: Shutdown at some banks in the Russian Federation

At the end of February 2022, the Central Bank of the Russian Federation announced that Apple Pay and Google Pay were being disabled from users of VTB, Sovcombank, Promsvyazbank and Otkritie due to US sanctions. The latter were introduced due to the start of the military operation of the Russian Federation on the territory of Ukraine. Read more here.

2021

2nd in the world in terms of the number of mobile payment users - 808.3 million people

The appearance in Russia of a fraud scheme with Apple Pay

At the end of September 2021, it became known about the appearance Russia in the scheme of fraud using payment services Apple Pay and. About Google Pay the new scam "" To news told in several credit institutions.

According to the representative of Tinkoff, the attackers began to convince the Russians to link the criminal's card to their mobile payment applications under the pretext that the client's money is trying to steal and it must be credited to a "safe" card. The client uses an ATM with an NFC reader, in which there is no need to present "plastic": he applies a phone with the Pay service installed and replenishes the "secure" card. However, funds are transferred to a fraudster who has a physical card. He can withdraw money, for example, withdraw it from another ATM.

The country's largest banks confirm that they began to record new fraud schemes. They have already been heard from Gazprombank, MKB, Otkrytie, VTB and Promsvyazbank.

Experts warn that the scheme with Apple Pay and Google Pay mobile payment systems is not traditional, a person may not immediately guess that he is dealing with fraudsters.

Experts interviewed by the newspaper doubted that this method of fraud could be widespread due to its complexity. After all, the share of Apple Pay and Google Pay using services, according to them, is small against the background of the total number of cartholders, and adding "plastic" to the wallet without its photo is not an easy procedure even for them.

The Bank of Russia is aware of this scheme. As a rule, attackers use it along with the client's urge to take out a loan and transfer borrowed money to "secure accounts." The Central Bank added to Izvestia that a consumer who is faced with such a deception is advised to stop talking to the attacker.

https://iz.ru/1228458/natalia-ilina/sdelat-na-bankomate-moshenniki-stali-vorovat-dengi-s-apple-i-google-pay

Plan to launch Goldman Sachs-based Apple Pay Later lending service

In July 2021, it became known that Apple Inc. is working on a new service that will allow consumers to pay for any purchases using Apple Pay in installments, competing with the "buy now, pay later" offers popular among Affirm Holdings and PayPal Holdings.

The upcoming service, known internally as Apple Pay Later, will use Goldman Sachs Group as a lender to provide loans needed for installments.

It is planned that the service will work as follows: when a user makes a purchase through Apple Pay on his Apple device, he will have the opportunity to pay it either with four interest-free payments every two weeks, or for several months with interest.

The four-payment plan is called "Apple Pay in 4," while the long-term payment plans are called "Apple Pay Monthly Installations."

2020

Russia ranked second in the world in the number of Apple Pay users

In 2020 Russia , it took second place in the world in the number of Apple Pay users, losing only. USA She also entered the top three. Britain

According to Vedomosti, in Russia there are about 20-25 million actively used iPhones with Apple Pay support. Almost all Russians who have Apple gadgets use their payment system, says Sergey Polovnikov, head of the Content-Review project.

According to him, a unique situation has developed in Russia. On the one hand, Russians have more money, including for supporting various kinds of payment technologies, than in third world countries, while the reverence for cash is reduced. On the other hand, in Russia, very quickly, at the initiative of both the state and banks, there was a transition to chip cards with support for contactless payments, which means that mobile payments fell on the prepared ground, the expert notes.

Sources of the publication linked Russia's entry into 2nd place in terms of the number of Apple Pay users in the world with the result of the digitalization of the Russian banking system and the technical literacy of its clients. Banks have appreciated their interest in contactless technologies - hundreds of Russian credit institutions offer Apple Pay connectivity, which is more than in all European countries combined, one of the interlocutors recalls.

According to MTS Bank, Apple Pay became the most popular mobile payment service among customers in October - November this year. 39% of contactless transactions were made through it. In second place is Google Pay (35%), followed by Samsung Pay (23%).

According to Loop Ventures, by early September 2020, there were 507 million Apple Pay users worldwide, up 15% from a year earlier. The COVID-19 coronavirus pandemic has spurred customers to use contactless payment technologies for goods and services more often, as they reduce the risk of infection compared to the use of cash and plastic bank cards.^[1]

Integration with Freedom Finance Internet Acquiring

April 29, 2020 Freedom Finance Bank announced the completion of the integration Apple of the Pay payment service into its own -. Internetacquiring More. here

Contactless payment through Apple Pay and Google Pay is accepted by 19% of companies using Yandex.Cash

Contactless payment through Apple Pay and Google Pay on sites or in applications is accepted by 19% of companies using Yandex.Cash. This was announced on February 12, 2020 by Yandex. Read more here.

2019: Germany obliges Apple to open access to NFC

In mid-November 2019, the German parliament passed a money laundering bill, which, among other things, obliges Apple to provide other payment services with access to the NFC module in the iPhone. Read more here.

2018

Launch in Germany 2 years later than in Russia

On December 11, 2018, Apple Pay officially launched in Germany more than two years after the launch of the payment service in Russia and four years after its launch in the United States.

Apple Pay-enabled cards have begun to be offered by banks such as Deutsche Bank, Comdirect, Hypovereinsbank, Wirecard and Hanseatic Bank. The first contactless payment for goods and services using Apple Pay in Germany was sold by retailers Aldi and Lidl, supermarket chain Kaufland, pharmacies Rossmann and DM, department store chain Kaufhof, clothing stores H&M, Esprit, C&A and Zara, electronics seller MediaMarkt, etc.^[2]

According to the Reuters news agency, before the launch in Germany, Apple Pay worked in 20 other countries, including France, Poland and Switzerland. German banks have long refused to implement a payment solution due to disagreements over the amount of fees for each purchase through Apple Pay. For example, in Russia, the commission is 0.05% of the purchase amount on debit cards and 0.12% on credit cards. In addition, the bank must pay 45 rubles a year for each card connected to the service.

At the end of November 2018, Apple Pay became available in Belgium and Kazakhstan. Rumors about the official launch of the application in Germany circulated in the press for several months, but the release date remained unclear. In November, the American company updated the website of the German representative office, on which it promised the "imminent" launch of Apple Pay.

In early December 2018, a number of deputies submitted  to the State Duma a bill on requirements for operators of foreign payment systems (FPS) to work in Russia. It obliges foreign operators of such systems, including Apple Pay, to have a representative in Russia - a legal entity through which they can submit an application to  the Bank of Russia for inclusion in the register of IPS operators. Thus, the Central Bank wants to strengthen control over payment services.

Authorities probe into Credit Suisse and UBS boycott against Apple Pay

In November 2018, the Swiss Competition Commission (WEKO) launched an investigation into an alleged boycott of payment services Apple Pay and Samsung Pay by financial firms including Credit Suisse, UBS, Aduno Holding and PostFinance, Swisscard. Offices are being searched. Read more here.

Apple Pay launch in Belarus postponed until 2020

The Apple Pay payment platform will work in Belarus no earlier than 2020. This was told by experts who participated in negotiations with the American corporation. The^[3].

It is noted that so far the launch of Apple Pay in Belarus has been recognized as inappropriate due to the meager number of alleged transactions. In addition, only a few banks and a small number of players from the trade and service market showed interest in the payment system. In fact, the Apple Pay platform was not in demand in Belarus and could exist subject to investments from Apple or the Russian division of the company.

Apple refuses to invest in the development of the payment system in the republic for several reasons. The main one is small sales of apple equipment and low purchasing power of Belarusians. In fact, official sales of smartphones and computer technology in Belarus leave much to be desired. Experts familiar with the situation characterize the legal Apple market in Belarus as "virtually defunct." There are sales, but they do not allow the country to count on investment from Apple, including the introduction of new services.

The second reason is the demand for settlements through payment systems. There is an opinion that Belarusians are not yet ready to massively use mobile devices for non-cash payments. Even bank cards are considered by Belarusians as a new payment instrument.

It is expected that the parties will return to the launch of Apple Pay in Belarus in 2019. Accordingly, a possible launch of the system may not take place until 2020.

Use for church donations

In March 2018, the Church of England announced that parishioners in its churches would be able to donate and pay for church rites such as weddings and christenings by cashless means - using credit cards or contactless mobile payments from Apple Pay and Google Pay.

To make donations and payments more convenient for the modern flock, over 16 thousand churches, cathedrals and other religious facilities in the UK will be equipped with portable terminals for paying with credit cards or using mobile devices with support for Near Field Communication (NFC) wireless technology.

Earlier, in June 2017, as part of a testing program, the scheme was tested in 40 English parishes. Churches received mobile terminals for cashless transactions worth up to 30 pounds sterling ($42.3 at the exchange rate as of April 6, 2018). The terminals are available for sale on the Church of England specialized portal Parish Buying from 19.5 pounds ($27.5), according to the Church Times portal.^[4]

According to the publication, after the transaction, a check is printed, and a small commission is charged for using the terminal in the amount of 1.1% to 1.25% of the donation amount. In order to implement a new payment method, the church will need a WiFi connection to. to the Internet

Church of England spokesman John Preston explained that the decision to accept cashless payments for donations was made due to the fact that cash is becoming more rare in modern society, especially among young people.^[5]

Our parishioners are short of cash at times, so it's just wonderful that we can offer them a convenient and quick alternative, "commented Alison Davie, secretary of St. George's Church in Stamford, Lincolnshire.

2017

Apple Pay: Three years after launch

In the U.S., the number of consumers regularly using smartphones to pay for goods and services reached 17%, up from just 6% in 2014, according to a report by ACI Worldwide and Aite. In Europe, the most active users of mobile wallets are Spaniards (25% of regular users), followed by Italians (24%) and Swedes (23%). In Britain, this figure is only 14%.

At the same time, the technology is most popular in less economically developed countries that simply "skip" the stage of development of traditional infrastructure for card payments. In India, 56% of consumers said they regularly make payments using smartphones. Similar data were obtained in Thailand and Indonesia.

At the same time, in the UK, 37% of respondents reported that they trust their banks to protect personal data used in payments through a smartphone. In France and Holland, the number of such respondents was, respectively, 40% and 28%. Compared to previous years, in some countries the level of trust in mobile wallets has decreased, which may be due to an increase in the number of cases of fraud and abuse of user trust. ^[6].

Ways to compromise Apple Pay

At the BlackHat information security conference held on July 22-27 in the United States, Positive Technologies expert Timur Yunusov presented the results of a study of the security of the Apple Pay payment system. The researcher was able to detect several security problems that could allow attackers to compromise bank cards tied to Apple Pay's wallet, as well as make unauthorized payments on external resources.

In particular, large-scale security problems of Apple Pay were found on smartphones that underwent a jailbreak procedure (JailBreak is a process in which it becomes possible to freely access the file system, in other words, it is hacking the firmware of the iPhone, iPad, iPod Touch). On such devices, when adding a card to a wallet, a complete compromise of payment data is possible. In addition, the study found a number of shortcomings that are relevant for conventional smartphones, without an installed jailbreak. In particular, an attacker with the ability to intercept SSL traffic can fake and repeat transactions. This opens up the possibility of making unauthorized payments in various applications and websites.

Thus, iPhone owners using Apple Pay after jailbreak risk completely compromising their bank cards and losing funds, an expert at Positive Technologies emphasized. At the same time, users of smartphones that have not undergone the jailbreak procedure are not protected from stealing money when working with Apple Pay.

Serious responsibility in ensuring security lies with merchants, that is, resources that accept payment through Apple Pay, - said Timur Yunusov. - However, users themselves must comply with basic security measures, for example, do not install Apple Pay and do not link bank cards to the system on the iPhone after jailbreak, and also do not use unsecured connections in public places to make financial transactions

Positive Technologies experts advise stores that support Apple Pay technology to pay attention to the implementation of data transfer with payment gateways and customers. Users of the system, in turn, are advised to connect the 3D-Secure technology and activate SMS-informing about financial transactions - this will quickly identify the potential compromise of bank cards.

Apple announced iOS 11 with money transfers through iMessage

The Apple Pay payment system in the updated version of iOS received in June 2017 the function of transferring money between users, which will be carried out in the iMessage application. The money will go to the internal account of the system, from where it can be transferred to bank cards connected to the system.

With the help of the messenger, it will be possible to send and request a money transfer from friends from the contact list at the click of a button. All transfers will go to a virtual card, which the company calls the Apple Pay Cash Card. The funds can be immediately withdrawn to your bank account. And also spend online or offline in stores that already accept Apple Pay.

The updated Device Control Center and the slightly improved Siri voice assistant are also distinctive features of the new iOS release.

2016

Apple Pay in Russia charges banks a commission for each transaction

On debit cards, the commission is 0.05% of the purchase amount, on credit cards - 0.12%. Also, the bank must pay 45 rubles. per year for each card connected^[7] service^[8].

According to bankers, the indicated amount is insignificant for banks. For example, the commission they charge for servicing card transactions from outlets averages 1-2% of the purchase amount.

Moreover, it is noted that the penetration rate of Apple Pay (as well as Samsung Pay) in Russia is still low and this is not associated with high costs. Experts emphasize that now the main direction is the introduction of the service into the image of financial companies and the development of payments.

Bankers also compare two services - Apple Pay and Samsung Pay. So, Samsung Pay, unlike a competitor, does not take commissions from banks.

"Companies have a different strategy: for Samsung, a payment service is more a way to promote its brand, Apple plans to make money on it," experts emphasize.

Samsung Pay works with cards, Mastercard Alfa-BankVTB 24",,," " MTS bank Raiffeisen Bank and with." "Russian standardYandex.Money

Launch in Russia

On October 4, 2016, the Apple Pay payment system was launched in Russia. Sberbank became the first credit institution in the country to support the new service.

Sberbank customers using MasterCard cards have the opportunity to use Apple Pay for safe and convenient contactless payment for goods and services in stores.

The first partner bank of Apple Pay in Russia was Sberbank. According to the data, Vedomosti partners in the future may also become,, Raiffeisen Bank,, and Tinkoff Bank "Binbank". "Opening" VTB 24 Yandex.Money

 The first Russian outlets working with Apple Pay included supermarket chains, and "Alphabet of Taste" "Magnet" ,, and  "Auchan" CENTRAL DEPARTMENT STORE Media Markt a number of others.

Sberbank said in a press release that payments through Apple Pay are confidential and secure, this is guaranteed by the Mastercard Digital Enablement Service (MDES) platform, which uses advanced technologies: EMV, tokenization, cryptography and biometrics.

Payment with Apple Pay can be set up in the Sberbank Online mobile application. At the same time, users will be able to continue to receive bonuses from using their credit and debit cards.

Apple Pay is becoming a driver for the distribution of contactless payments in Russia and in the world. Many Sberbank customers are actively using new technologies and will increasingly prefer cashless and contactless payment using their smartphone, - said Alexander Torbakhov, Deputy Chairman of the Board of Sberbank.[9]

Negotiations with banks on the launch of the service in Russia

The Russian division of Apple Rus LLC is negotiating with a number of Russian banks, including Alfa Bank, Raiffeisen Bank, Sberbank, VTB24 and others, Izvestia wrote in early 2016. It is expected that by the end of 2016 Apple will be able to agree with Russian banks and launch its payment system. It will be available, however, only to clients of those banks that agree to cooperate^[10] Apple^[11] Apple Corporation^[12].

Indirectly, the launch of Apple Pay in Russia was confirmed by Binbank and expressed the opinion that iOS will quickly bypass Android in this direction. NFC payments using Android devices officially work in Russia, and in October 2016 Samsung launched its Samsung Pay payment system in the Russian Federation.

2014: Service launch in the United States

By the fourth quarter of 2014, Apple had merged the system with iTunes accounts and its own App Store, which stored 800 million credit card data. Apple has entered into agreements with 500 banks over its use of Apple Pay.

Apple Pay is available in the US with Visa, MasterCard and American Express cards. You can pay off at McDonald's restaurants, Apple Stores, Walgreens, Macy's, Disney and other large chains.

Notes