What Apple Pay Means for Retailers

Apple Pay, a mobile payment service for online and store-based retailers, is Apple's own version of a mobile wallet. Launching this October, Apple Pay will be embedded into the iPhone 6 and iPhone 6 Plus (which will become available on Sept. 17) and in the Apple Watch (available early next year).

According to an article in New York Magazine published yesterday, the technology works as follows: To make a purchase, users tap their iPhone (or Apple Watch) against a touchless payment terminal while holding their thumbs over the Touch ID sensor, and a near-field communication (NFC) chip communicates with the terminal using a one-time security code generated for the specific transaction.