Apple finally jumped into mobile payments today with Apple Pay.
Cupertino will build Apple Pay into the new iPhone 6 and iPhone 6 Plus via a near-field communication (NFC) antenna across the top. Just wave your iPhone in front of the contactless payment station at participating merchants and you're done.
It will launch in the U.S. next month as a free update to iOS 8, which lands on Sept. 17.
Launch partners include McDonald's (use Apple Pay in the drive-thru) as well as Whole Foods, Panera, and Disney theme parks. Apple Stores will also accept Apple Pay, of course. Web-based services will also integrate with Apple Pay, including Groupon, Uber, and MLB at Bat. And you can use it at the 220,000 merchants that already accept contactless payments, Apple said.
Recommended by Our Editors
For the security conscious, Apple promised that all payment information will be encrypted. Credit card data will be accessible via PassBook. Just snap a photo of your card with your iPhone's camera, verify with your bank, and start shopping.
Apple, however, does not store your credit card number, said Apple exec Eddy Cue. It creates a device-only account number each time you pay. If you go to a physical location, meanwhile, Apple doesn't know what you bought, where you bought it, or how much you paid. The cashier also doesn't know your name.
If your phone is stolen, use Find My iPhone to suspend all payments.
Apple has teamed with American Express, Visa, and MasterCard, as well as the six largest banks on Apple Pay.
Stay tuned for more details. For more, follow PCMag's live blog of Apple's event.