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Fast facts

Market USand US issued card holders anywhere in the world

Currencies 187 currencies

Status New mobile-centric payment method

Relevance level Demonstrate innovation

Supported Devices iPhone 6, iPhone 6 Plus, Apple Watch-compatible devices, iPad Air 2, and iPad Mini

Channels Smartphone, Tablet, POS

Who Its Relevant For

Due to its cool factor and frictionless experience, Apple Pay is a

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Chargebacks Not for any fraud related reason codes

Refunds Yes

Partial refunds Yes

Recurring payments Yes

Adyen offers a full-service Apple Pay solution, including all

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Apple PayPayment method guideApple Pay is a mobile payment and digital wallet service by Apple Inc.

that lets users make payments in-app or in-store with select Apple

devices. At this time, Apple Pay works with the large majority of U.S.

issued payment cards.

:LWK$SSOH3D\PHUFKDQWVEHQHWIURP Seamless cross channel solution in-app & in-store

Delivering a frictionless customer experience with Touch ID

DXWKRUL]DWLRQUDWHRQO\IDLOVRQLQVXFLHQWIXQGV Liability shift on fraudulent transactions

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Setup

Apple Pay acts as a digital wallet, and stores consumers payment

FDUGVVHFXUHO\&RQVXPHUVFDQDGGWKHLUFDUGVHLWKHUE\HQWHULQJWKHPPDQXDOO\RUE\VFDQQLQJWKHPLQZLWKWKHGHYLFHVFDPHUDAt this time, Apple Pay works with the majority of US issued credit

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:KHQFRQVXPHUVUVWVHWXS$SSOH3D\WKH\FDQHLWKHUPDQXDOO\LQSXWWKHLUFDUGGHWDLOVRUWDNHDSKRWRRIWKHIURQWRIWKHFDUGIthey choose the latter, all of the information is encrypted and sent

to Apples servers, where Apple decrypts and determines the card

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Next, the card scheme, as part of the Apple Pay solution, sends

the encrypted card data, along with other user information, such

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How it works

GHYLFHORFDWLRQGHYLFHKLVWRU\ZLWKL7XQHVWRWKHLVVXLQJEDQNThe bank then determines whether the card can be virtualized for

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Transactions on tablet/smartphone

Apple Pay is an inherently mobile experience, and works on the

L3KRQHL3KRQH3OXVL3DG$LUDQGWKHL3DG0LQL$SSOH3D\LVHQDEOHGVLQFHWKHL26UHOHDVHGHOLYHUHG2FWREHUWKTo pay within apps, consumers simply select Apple Pay, and place

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Once consumers submit the payment, Adyen processes the

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3OHDVHQRWHWKDWWKLVLVDQH[DPSOHVKRSSHURZRQO\DQGDFWXDOsteps may differ according to the shopper's choices and the

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$IWHUVHOHFWLQJWKHLWHPWKH\ZLVKWRSXUFKDVHWKH shopper selects Apple Pay (this is an option for

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POS Transactions

Apple Pay also works on the iPhone 6 and on the Apple Watch to

IDFLOLWDWHLQVWRUHSD\PHQWVYLD1)&1HDU)LHOG&RPPXQLFDWLRQApple Pay works at any merchant that is NFC enabled at the Point-

of-Sale, such as McDonalds, Bloomingdales, Macys, Walgreens,

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To pay in stores, consumers simply tap their iPhone against

the contactless reader at checkout, and then authenticate the

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This authentication signals to the phone that it can transmit the

Device Account Number (a token issued by the card network) and

its accompanying transaction specific dynamic security code

WRWKHPHUFKDQWVWHUPLQDO7KHWUDQVDFWLRQWKHQSURFHHGVDVDQRUPDOFUHGLWFDUGWUDQVDFWLRQZRXOG7KHRQO\GLHUHQFHLVWKHbank network or issuer verifies that the consumers payment

information is coming from the correct device and has not been

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Security

$SSOHGHVLJQHG$SSOH3D\WRXVHWRNHQL]DWLRQ$SSOHKDVZRUNHGdirectly with credit card networks like Visa and American Express

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The Apple Pay setup is the only time actual credit card information

RZVEHWZHHQ$SSOHDQGWKHLVVXHU2QFHWKHLQIRUPDWLRQJHWVto the card network, it is decrypted and the card network issues a

WRNHQFDOOHGD'HYLFH$FFRXQW1XPEHU'$17KH'$1LVGHYLFHVSHFLF7KHVFKHPHOLQNVWKHRULJLQDO3$1WRWKLV'$17KHFDUGnetwork sends this DAN to Apple along with other information,

such as the key used to generate dynamic security codes unique

WRHDFKWUDQVDFWLRQ$SSOHVHFXUHO\VWRUHVWKLVLQIRUPDWLRQRQthe phone in a secure element, which is a separate chip within

WKHL3KRQHUXQQLQJVHSDUDWHGIURPWKHSKRQHRSHUDWLQJV\VWHPThe secure chip is also the only element within the device that can

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During merchant transactions, Apple Pay does not send the

merchant the standard card number, CVV or expiration date from

WKHFXVWRPHUQVWHDGLWRQO\VHQGVWKHPHUFKDQWWKH'$17KLVDAN is translated into a credit card number only when it reaches

the payment network, meaning that only the issuing bank and the

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Available Integration Methods

$W WKLVPRPHQW $SSOH 3D\ RQO\ ZRUNV ZLWK QDWLYH L26 DSSVMerchants wishing to integrate Apple Pay will do that through

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$G\HQRHUVH[LEOHLQWHJUDWLRQPHWKRGVWKDWPDNHLWHDV\IRUmerchants to add Apple Pay support no matter the selected iOS

DSSLQWHJUDWLRQZLWKWKH$SSOH3D\VHUYLFHV3RVVLEOHLQWHJUDWLRQmethods include:

Adyens iOS Framework: Encrypted Apple Pay data is retrieved

using Adyen software that can be added to the merchants

native application

Decrypted Apple Pay Data: The merchant retrieves the Apple

Pay Data and decrypts it before sending it to Adyen

for processing

Encrypted Apple Pay Data: The merchants retrieves the

Apple Pay Data and does not decrypt it before sending it

for Adyen for processing

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