Apple Pay Payment Method Guide
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Transcript of Apple Pay Payment Method Guide
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Fast facts
Market USand US issued card holders anywhere in the world
Currencies 187 currencies
Status New mobile-centric payment method
Relevance level Demonstrate innovation
Supported Devices iPhone 6, iPhone 6 Plus, Apple Watch-compatible devices, iPad Air 2, and iPad Mini
Channels Smartphone, Tablet, POS
Who Its Relevant For
Due to its cool factor and frictionless experience, Apple Pay is a
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Chargebacks Not for any fraud related reason codes
Refunds Yes
Partial refunds Yes
Recurring payments Yes
Adyen offers a full-service Apple Pay solution, including all
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Apple PayPayment method guideApple Pay is a mobile payment and digital wallet service by Apple Inc.
that lets users make payments in-app or in-store with select Apple
devices. At this time, Apple Pay works with the large majority of U.S.
issued payment cards.
:LWK$SSOH3D\PHUFKDQWVEHQHWIURP Seamless cross channel solution in-app & in-store
Delivering a frictionless customer experience with Touch ID
DXWKRUL]DWLRQUDWHRQO\IDLOVRQLQVXFLHQWIXQGV Liability shift on fraudulent transactions
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Setup
Apple Pay acts as a digital wallet, and stores consumers payment
FDUGVVHFXUHO\&RQVXPHUVFDQDGGWKHLUFDUGVHLWKHUE\HQWHULQJWKHPPDQXDOO\RUE\VFDQQLQJWKHPLQZLWKWKHGHYLFHVFDPHUDAt this time, Apple Pay works with the majority of US issued credit
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:KHQFRQVXPHUVUVWVHWXS$SSOH3D\WKH\FDQHLWKHUPDQXDOO\LQSXWWKHLUFDUGGHWDLOVRUWDNHDSKRWRRIWKHIURQWRIWKHFDUGIthey choose the latter, all of the information is encrypted and sent
to Apples servers, where Apple decrypts and determines the card
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Next, the card scheme, as part of the Apple Pay solution, sends
the encrypted card data, along with other user information, such
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How it works
GHYLFHORFDWLRQGHYLFHKLVWRU\ZLWKL7XQHVWRWKHLVVXLQJEDQNThe bank then determines whether the card can be virtualized for
$SSOH3D\3OHDVHQRWHWKDWRQO\LVVXHUVWKDWDUHLQWHJUDWHGZLWK$SSOH3D\ZLOOUHFHLYHWKHVHUHTXHVWVIWKHLVVXHUDSSURYHVWKHdata of the virtualized card is securely sent to the Secure Element
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Transactions on tablet/smartphone
Apple Pay is an inherently mobile experience, and works on the
L3KRQHL3KRQH3OXVL3DG$LUDQGWKHL3DG0LQL$SSOH3D\LVHQDEOHGVLQFHWKHL26UHOHDVHGHOLYHUHG2FWREHUWKTo pay within apps, consumers simply select Apple Pay, and place
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Once consumers submit the payment, Adyen processes the
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3OHDVHQRWHWKDWWKLVLVDQH[DPSOHVKRSSHURZRQO\DQGDFWXDOsteps may differ according to the shopper's choices and the
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$IWHUVHOHFWLQJWKHLWHPWKH\ZLVKWRSXUFKDVHWKH shopper selects Apple Pay (this is an option for
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POS Transactions
Apple Pay also works on the iPhone 6 and on the Apple Watch to
IDFLOLWDWHLQVWRUHSD\PHQWVYLD1)&1HDU)LHOG&RPPXQLFDWLRQApple Pay works at any merchant that is NFC enabled at the Point-
of-Sale, such as McDonalds, Bloomingdales, Macys, Walgreens,
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To pay in stores, consumers simply tap their iPhone against
the contactless reader at checkout, and then authenticate the
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This authentication signals to the phone that it can transmit the
Device Account Number (a token issued by the card network) and
its accompanying transaction specific dynamic security code
WRWKHPHUFKDQWVWHUPLQDO7KHWUDQVDFWLRQWKHQSURFHHGVDVDQRUPDOFUHGLWFDUGWUDQVDFWLRQZRXOG7KHRQO\GLHUHQFHLVWKHbank network or issuer verifies that the consumers payment
information is coming from the correct device and has not been
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Security
$SSOHGHVLJQHG$SSOH3D\WRXVHWRNHQL]DWLRQ$SSOHKDVZRUNHGdirectly with credit card networks like Visa and American Express
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The Apple Pay setup is the only time actual credit card information
RZVEHWZHHQ$SSOHDQGWKHLVVXHU2QFHWKHLQIRUPDWLRQJHWVto the card network, it is decrypted and the card network issues a
WRNHQFDOOHGD'HYLFH$FFRXQW1XPEHU'$17KH'$1LVGHYLFHVSHFLF7KHVFKHPHOLQNVWKHRULJLQDO3$1WRWKLV'$17KHFDUGnetwork sends this DAN to Apple along with other information,
such as the key used to generate dynamic security codes unique
WRHDFKWUDQVDFWLRQ$SSOHVHFXUHO\VWRUHVWKLVLQIRUPDWLRQRQthe phone in a secure element, which is a separate chip within
WKHL3KRQHUXQQLQJVHSDUDWHGIURPWKHSKRQHRSHUDWLQJV\VWHPThe secure chip is also the only element within the device that can
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During merchant transactions, Apple Pay does not send the
merchant the standard card number, CVV or expiration date from
WKHFXVWRPHUQVWHDGLWRQO\VHQGVWKHPHUFKDQWWKH'$17KLVDAN is translated into a credit card number only when it reaches
the payment network, meaning that only the issuing bank and the
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Available Integration Methods
$W WKLVPRPHQW $SSOH 3D\ RQO\ ZRUNV ZLWK QDWLYH L26 DSSVMerchants wishing to integrate Apple Pay will do that through
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$G\HQRHUVH[LEOHLQWHJUDWLRQPHWKRGVWKDWPDNHLWHDV\IRUmerchants to add Apple Pay support no matter the selected iOS
DSSLQWHJUDWLRQZLWKWKH$SSOH3D\VHUYLFHV3RVVLEOHLQWHJUDWLRQmethods include:
Adyens iOS Framework: Encrypted Apple Pay data is retrieved
using Adyen software that can be added to the merchants
native application
Decrypted Apple Pay Data: The merchant retrieves the Apple
Pay Data and decrypts it before sending it to Adyen
for processing
Encrypted Apple Pay Data: The merchants retrieves the
Apple Pay Data and does not decrypt it before sending it
for Adyen for processing
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