On Tuesday, Apple announced that a new feature called ApplePay will be built into every iPhone 6 and 6 Plus.
ApplePay uses an NFC chip and new Secure Element chip for security. You can add cards you have linked to iTunes account, and adding a new card is simple: You take a picture, and Apple verifies with your bank. The card is then added to Passbook. It uses device-specific account numbers and one-time-use security codes.
Apple states that the company will not track what you bought, where you bought it, and how much you spent. The cashier won’t see your name, credit card number, or security code.
ApplePay is supported by American Express, MasterCard, and Visa, and the six biggest banks in the U.S. Major department stores, drug stores, and restaurants are already on board. McDonald’s is even adding ApplePay to its drive-thru.
There are a lot of big names involved here—this might be the first digital wallet to gain big traction. That is, of course, if the company can assuage security concerns.