Apple might be gushing over the security of its new mobile payment system, but not everyone is convinced. In fact, Apple Pay already has one major hater: mobile payment rival PayPal.
The online payment firm on Monday took out a full-page ad (pictured below) in The New York Times, San Francisco Chronicle, and USA Today questioning the security of Apple's new contactless payment system. The ad suggests that Apple Pay is only as safe as selfies in iCloud, alluding to a recent security breach that lead to the leak of celebrity nudes.
"We the people want our money safer than our selifes," the ad reads. "PayPal protecting the people economy." The ad goes on to encourage readers to "download the PayPal app now and securely buy almost anything with just one touch."
Unveiled alongside the iPhone 6 and iPhone 6 Plus on Sept. 9, Apple Pay will let you purchase items at participating stores and restaurants by simply waving your smartphone in front of the contactless payment station. It will launch in the U.S. in October as a free update to iOS 8, which drops today.
When you add your card number to the PassBook app to set up Apple Pay, your iPhone creates a unique Device Account Number for that card, encrypts it, and stores it on a dedicated chip in your device — not on Apple's servers. Then, when you make a purchase, the Device Account Number, along with a transaction-specific security code is used to process the payment — so your actual credit or debit card number is never shared.
If your phone is stolen, you can use Find My iPhone to suspend all payments.
Security experts are largely optimistic about Apple's new system, but it's important to note that any payment solution, including PayPal and Apple Pay, could be susceptible to hacks.
For more, check out our video below and Why You Should Ditch Your Wallet for Apple Pay.