Ken Hinrichs

Apr 06 2015

What to Know About Apple Pay

What to Know About Apple Pay

Apple released Apple Pay in October of 2014 creating a lot of excitement about the new service. Apple Pay is a mobile payment and digital wallet service that enables Apple users to make payments using their iPhone 6, iPhone 6 Plus, Apple Watch compatible devices, iPad Air 2, and iPad Mini 3. Apple Pay can be used at brick and mortar stores in addition to online purchases with supported apps.

How purchases with Apple Pay work.

Purchases made with an Apple Pay compatible device are equipped with Near Field Communication (NFC) that allows radio frequency technology built into the device to communicate with payment terminals. Once the NFC connects to the payment terminal, it uses biometric identification by placing your finger on the device home button to confirm the payment in lieu of a signature. This level of biometric identification is a layer to improve payment security.

Apple Pay, in combination with the card brands, also offers tokenization. These one-time tokens are created for every transaction so sensitive card data is not provided to merchants or stored on the phone. When a transaction occurs, the token number is sent to the payment processor and securely matched to the card number.

Should I trust Apple Pay?

There is a growing trend of card breaches at retail locations. With tokenization, merchants no longer store card information that can be used by hackers. Tokenization coupled with biometric authorization offers new security tools that minimize the risk of card information being used for fraud.

Will Apple Pay take longer to make purchases at retailers?

After testing, the time it takes to make purchases at retailers is just as fast as a traditional card swipe or entry of a PIN through a card transaction.

Which merchants currently accept Apple Pay?

Apple has started their rollout with many major retailers and apps. For a detailed list, visit Apple Pay’s page on

Will it cost to use Apple Pay?

No, there will be no cost to you to use Apple Pay to make purchases.

Hills Bank is excited to support Apple Pay. We are working to support our debit and credit cards with Apple. We will provide more updates as we work towards a definitive date so please keep checking back on our blog, website, and social media channels as more information about Apple Pay support becomes available.

Ken Hinrichs

About Ken Hinrichs

Ken Hinrichs is Senior Vice President, Director of Electronic Banking at Hills Bank’s Operation Center in Hills, IA. He has been at Hills Bank since 1999 working with payment and delivery channels. Ken can be reached at

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