Here’s How the Security Behind Apple Pay Will Really Work


Ian Kar:

During in-store transactions, Apple will be passing the cryptogram and token to merchants via NFC, and Apple will be paying a “card present” rate in NFC purchases, Lambert confirmed to Bank Innovation. However, when using Bluetooth Low Energy (BLE), presumably how the iPhone 5 and 5S will do payments, or when making an in-app purchase using Apple Pay, the transaction fee will be the equivalent to a “card-not-present” rate.

Interesting tidbit. And it again points to why Apple is using NFC here instead of just doing it over Bluetooth LE, which they had already been using for a while.