For two hours on Tuesday, Apple unveiled its latest and greatest devices and one piece of software that they hope will eliminate the need for wallets.
In the company's keynote address, Apple CEO Tim Cook said the new digital wallet "will forever change the way we buy." Apple already has agreements in place with major credit card companies and retailers to make their vision a reality.
Eddy Cue, Apple's senior vice president, said in his address that Apple Pay would ultimately save consumers time at the checkout. Coming exclusively on the iPhone 6 and iPhone 6 Plus, Apple Pay would allow users to store their credit cards on their device and pay for goods by holding their handset close to the cash register.
Apple Pay will work with Visa, American Express and MasterCard. Participating retailers - online as well - will include the Apple Store (obviously), Staples, Sephora, Nike, Walgreens/Duane Reed, Groupon, OpenTable, Starbucks, Whole Foods, Panera Bread, Subway, McDonalds and even in fast food drive-thru. Users will also be able to use Apple Pay at Disney and Major League Baseball games.
Cue emphasized Apple Pay's security, stating that the feature will not require a credit card number, address and that the merchant will not obtain any sensitive information. Using the Find My iPhone app, users will also be able to suspend payments associated with their device, should they lose it, without cancelling any credit cards.
"We have security integrated throughout both hardware and software in a way only Apple can," Cue said in his address.
The new payment method also comes with other marketing and advertising advantages, such as coupons and other promotions sent straight to your iPhone.
"This should be a very natural extension of smartphone technology," Gil Lauria, a Wedbush Securities analyst, told the Wall Street Journal. "Imagine walking through Macy's and getting an offer for 15% off sent right to your phone and then being able to apply that just by flashing your phone at the register."
