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Credit union representatives at NAFCU's Congressional Caucus Wednesday were briefed on the new Apple Pay by Kevin Rowland, vice president of strategic partnerships at MasterCard USA.

The new Apple Pay features a new secure payment method that MasterCard cardholders will be able to use on newer iterations of the iPhone – 6 and 6 Plus – and Apple Watch. It will become available in October with a free update to iOS 8 in October.

Reports note MasterCard, Visa and American Express have entered into agreements with Apple to offer the product, and several large retailers have signed up. So have about a dozen or so card issuers, including Navy Federal Credit Union.

Rowland, during a Caucus luncheon address Wednesday, noted the enhanced security of Apple Pay and its flexibility. A digitized token using a MasterCard "digital enablement service" is created and used with the phone's secure element when a mobile transaction occurs. The device is held close to a card reader; to execute the transaction, the account holder presses his finger to a fingerprint sensor on the phone.

Rowland noted as cybersecurity concerns grow, consumers are moving toward technologies that offer better protection from data and identity theft. He cited data showing that the share of U.S. retail e-commerce volume driven via digital and mobile devices is projected to rise to 26 percent by 2016, up from the current 19 percent.