Current Issues Project : Apple Pay And Bitcoin

Decent Essays
Juwan Latimer
Fin 320
Current Issues Project

Apple Pay and Bitcoin are both relatively new means of payment that are catching the public eye. Although they share some similarities, they are quite different in the way they work. Apple Pay is a method of streamlining the payment process at credit card terminals, while Bitcoin is a completely new form of digital currency, which offers its own means of payment.
Apple Pay is a means of payment created by Apple Inc that allows its users to pay using their mobile devices such as the iPhone 6 and Apple Watch. Apple pay is very similar to paying for transactions on a credit card except apple pay is completely digital. Users of apple pay can use their mobile device at checkout to
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Once the user is authenticated by the iPhone, the transaction will complete successfully given that funds are not insufficient or that there are no issues with the credit card company. Users will feel their iPhones vibrate to signify that the transaction was successful. Users pay with the Apple Watch in a similar fashion. Users hold their Apple Watch up to the sensor on the credit card terminal but instead of pressing the home button, the user double clicks an elongated, silver, oval shaped button located below the digital crown, which is a small circular structure with ridges (D’orazio).
Apple Pay connects to credit card terminals using near field communication. In order for near field communication to work, both devices must contain a near field communication enabled chip which allows data to be wirelessly transferred between devices. There are two methods of near field communication. The first is two way communication in which data is exchanged between devices in which near field communication chips are installed. The second is one way communication in which data is only modified on only one of the devices. Apple Pay uses one way communication because it utilizes the sensors on credit card terminals, which modify the data on the near field communication chip located in the iPhone6 or Apple Watch. Near field communication enabled devices, like the name suggests, can only communicate with devices that are very close to them and are no more than a
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