Apple Pay

Payment method guide

Apple 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.

Seamless cross channel solution in-app & in-store

Delivering a frictionless customer experience with Touch ID
99% authorization rate
Liability shift on fraudulent transactions

Fast facts
Markets
In-app and POS

Markets

that Apple Pay only works for physical goods and services. In-app
purchases for digital goods or within iTunes are conducted via

United States
United Kingdom
US and UK issued card holders
anywhere in the world.

reconciliation, reporting and settlement services.

Australia
Canada
Australian and Canadian cards issued
anywhere in the world.

Recurring payments

Yes

Refunds

Yes

Currencies

187 currencies

Partial refunds

Yes

Status

New mobile-centric payment method

Chargebacks

Not for any fraud related reason codes

Relevance level

Demonstrate innovation

Supported devices

iPhone 6, iPhone 6 Plus, iPhone 6S,

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

(although cards are being regularly added). As of November 2015,

Smartphone, Tablet, POS

UK: Visa, MasterCard, American Express

In-app only

Channels

the following cards are supported in each market:

US: Visa, MasterCard, American Express, Discover
Australia: American Express

Who Its Relevant For

Canada: American Express

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

Adyen supports all the cards above.

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How it works
Setup
Apple Pay acts as a digital wallet, and stores consumers payment

Apple Pay will receive these requests. If the issuer approves, the

cards securely on the device.

data of the virtualized card is securely sent to the Secure Element

in the Apple device and the device is ready for use.

input their card details or take a photo of the front of the card. If

Transactions on tablet/smartphone

they choose the latter, all of the information is encrypted and sent

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

to Apples servers, where Apple decrypts and determines the card

iPhone 6, iPhone 6 Plus, iPhone 6S Plus, iPad Air 2, and the iPad

scheme or card issuer. Apple then re-encrypts the data with a key

Mini 3. Apple Pay is enabled since the iOS8.1 release, delivered

October 20th, 2014.

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

To pay within apps, consumers simply select Apple Pay, and place

the encrypted card data, along with other user information, such
as iTunes account activity and device information (e.g. name of
device, location, device history with iTunes) to the issuing bank.

Once consumers submit the payment, Adyen processes the

The bank then determines whether the card can be virtualized for
Apple Pay. Please note that only issuers that are integrated with

and functionality are regularly added through iOS updates.

www.adyen.com

steps may differ according to the shopper's choices and the

merchant setup.

1. After selecting the item they wish to purchase, the

2. Shopper pays with Touch ID where the iPhone (or

shopper selects Apple Pay (this is an option for

express checkout).

3. The shopper reaches the thank you page.

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POS Transactions

Available Integration Methods

Apple Pay also works on the iPhone 6, iPhone 6S, iPhone 6S Plus

At this moment Apple Pay only works with native iOS apps.

and on the Apple Watch to facilitate in-store payments via NFC

Merchants wishing to integrate Apple Pay will do that through

(Near Field Communication). Apple Pay works at any merchant that

Adyens iOS library or Direct API.

is NFC enabled at the Point-of-Sale.

To pay in stores, consumers simply tap their iPhone against

merchants to add Apple Pay support no matter the selected iOS

the contactless reader at checkout, and then authenticate the

app integration with the Apple Pay services. Possible integration

transaction with Touch ID.

methods include:
Adyens iOS Framework: Encrypted Apple Pay data is retrieved

This authentication signals to the phone that it can transmit the

using Adyen software that can be added to the merchants

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

native application

its accompanying transaction specific dynamic security code

to the merchant's terminal. The transaction then proceeds as a

Decrypted Apple Pay Data: The merchant retrieves the Apple

Pay Data and decrypts it before sending it to Adyen
for processing

bank network or issuer verifies that the consumers payment

Encrypted Apple Pay Data: The merchants retrieves the

information is coming from the correct device and has not been

Apple Pay Data and does not decrypt it before sending it

duplicated.

for Adyen for processing

Security
Apple designed Apple Pay to use tokenization. Apple has worked

that should be addressed on a case-by-case basis.

directly with credit card networks like Visa and American Express
to move tokenization to their end of the chain.
The Apple Pay setup is the only time actual credit card information
to the card network, it is decrypted and the card network issues a
token called a Device Account Number (DAN). The DAN is devicenetwork sends this DAN to Apple along with other information,
such as the key used to generate dynamic security codes unique
to each transaction. Apple securely stores this information on
the phone in a secure element, which is a separate chip within
the iPhone running separated from the phone operating system.
The secure chip is also the only element within the device that can
produce dynamic security codes.
During merchant transactions, Apple Pay does not send the
merchant the standard card number, CVV or expiration date from
the customer. Instead, it only sends the merchant the DAN. This
DAN is translated into a credit card number only when it reaches
the payment network, meaning that only the issuing bank and the
card scheme have information about the card.

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