How does Apple Pay work?


Apple Pay is Apple's system for making purchases at retailers or in Apps. With Apple Pay you simply hold your Apple device up to the EFTPOS terminal, then use Touch ID to verify the purchase.

This infographic depicts the 6 key aspects of how an Apple Pay transaction occurs.

How does Apple Pay work? Infographic

The 6 steps of the Apple Pay Process

  1. User sets up Apple Pay on their iPhone within the Wallet Ap. The Card issuer sends a token and cryptogram to the phone which is stored as a “Secure Element”.
  2. User holds their iPhone over the EFTPOS terminal at the checkout, chooses which card to use and then verifies the payment using Touch ID or passcode .
  3. The EFTPOS terminal recognizes the secure element and sends the token and cryptogram to the merchant.
  4. The Cryptogram is sent to the card issuer who checks to make sure it is authentic.
  5. Card issuers confirms it is authentic and sends a token to the authorizing bank for decryption.
  6. Bank authorizes transaction and sends this to the merchant. Beep - Transaction is complete.

Apple Pay works with ANZ Credit and Debit Cards and American Express Credit Cards, before making a purchase withe your Apple device you will need to set up Apple Pay, this takes a couple of minitues, from when you will be ready to make your 1st Apple Pay transaction.