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October 17, 2014

Apple Pay starts today, 500 FIs sign on

More than 500 financial institutions have reportedly signed on for the Apple Pay system, which launches today through Apple's iPhone 6 and 6 Plus, and Apple Watch.

The payment system uses near-field communication chips in the phones to allow consumers to make purchases through the phones, confirming the purchases by using a TouchID fingerprint sensor.

Jim Laffoon, president and CEO of Security Service FCU, has said his credit union plans to join the Apple Pay sphere early in 2015. Navy Federal Credit Union is among the early list of financial institutions to have signed on. As noted previously, more than 200,000 retailers, including Whole Foods, McDonald's, Chevron and Macy's will accept Apple Pay.

Kevin Rowland of MasterCard (a NAFCU Services Preferred Partner) discussed the new payment system during NAFCU's Congressional Caucus. He said a digitized token using a MasterCard "digital enablement service" is created and used with the phone's secure element when a mobile transaction occurs. MasterCard will be working with NAFCU members interested in transitioning to the program.