How Apple Pay Actually Works

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Blog: birchtree.me

[@marcmeier8247]

Good Video for people outside the industry. I am working for a credit card provider in Europe. The implementation of Apple Pay was one of the easiest to implement projects we have run. And that is because we only had to connect this “wallet-layer” that you described here. For people that don’t know about credit cards handling, it is mind blowing how many layers are crossed back and forth for a payment to be executed.

[@ABetterComputer]

Thank you! And yeah, there are so many layers to payments it’s insane. Some companies have found success in doing multiple layers of the stack themselves, but yeah, there are still card brands, customer banks, merchant banks, and payment providers/gateways in the mix. So much happens in the 2 seconds between you clicking a “charge me” button and seeing a receipt.

[@HowdyJ]

Your presentation is so clean it's inspiring. I actually want to be able to do animations like that, and achieve such a clean audio and great lighting and framing. Also, I understood everything without issue. Great delivery, thank you.

[@leobuezo3600]

Really an excellent explanation about how a payment transaction works using a wallet like Apple Pay. thank you for help us to understand this complex flow! 🙌

[@user-he8vn6qy1v]

What an informative video. Thank you very much!

[@wesleybarnes5376]

Thank you for clearing this up for me, as a developer that implements payment processing I can't even find this explanation anywhere! 😅 Much love

[@kiriltsankov2681]

very underrated video. thanks a lot!

[@tom_smith]

Clear and concise description. Thank you.

[@mahmoudezzeldein680]

Really an excellent explanation

[@billf4429]

I'm glad you made the explanation clear about Apple Pay. I thought Apple Pay charges an addition fee for using their services at the counter when buying item(s) or service(s).

[@AleksanderBabayev]

Thank you very much for the explanation.

[@AndersonPEM]

So it's basically a way to transmit asymmetric encrypted data. The payment processor shares a public key with apple. Apple then encrypts your credit card info with this key. You pass the data along. The processor receives the data. And then uses the private key, which is the only one that can decrypt the data generated with the public key. And gets the plaintext data. Super interesting 😀

[@alatsamy]

Well explained. Subscribed

[@mahmoudsamir4744]

I use Sandisk usb-c flash drive formatted in exfat filesystem to backup my iPad pro 2020 but transferring files from iPad to the flash drive is very very slow. I don't want to format it in apfs file system because it won't be readable on windows pcs. Is there a solution for faster file transfer or Are there certain types of flash drives or external ssds that can make me transfer files faster?

[@generic_official]

How does Apple Pay compare with generated one-time use (virtual) credit card numbers? Is it as equally secure?

[@cocoarecords]

woah that was really amazing thanks a lot

[@mauricioflores3732]

Extremely useful!!!! 👌🏻 I would to know about paypal too

[@hamzariazuddin424]

Absolutely brilliant video. I am so confused with payments and trying to learn more about the actual infrastructure going on but everything i search for is so ambiguous and not clear. Would love to know how this model is or may be different to other fintechs like Alipay or Mobile money payment solutions which are prevalent in Africa. Its very hard to find concise clear information of who is involved in each transaction and what is going on. How does Apple Pay make money and who is it charging ?

[@rameshemv]

Great description. Can you please share a video or your thoughts on Apple Pay's UX guidelines. Specifically, , where do i offer the Apple Pay Button for the payment to be done?can i ask the user to first make a choice of which mode she/he wants to pay (for example, giving him an ApplePay, googlepay, otherwallet, credit card on one page)...and then upon user making the choice (say through a radio button), navigate to another another Page and show the applepay's Paybutton there. Is this acceptable? Thanks again for sharing this video, simple and clear

[@Fire_soul1796]

Does this apply to Samsung Pay, Google Wallet, or Google Pay?

[@Art-yn5dh]

Does the merchant ever see my card number? I like that my info gets encrypted only the third party sees my info adding extra layer of protection correct?

[@fryfully]

Does Apple Pay know where the transaction occurred and for how much? Or is that encrypted too?

[@jericaL]

Thanks!

[@VladimirDjokic]

cool, thanks!

[@deemis2601]

There is actually a way where merchant can also decrypt the payment token and send api request to payment provider / their gateway with DPAN, cryptogram, expiry directly. Merchant must exchange the keys/certificates with Apple Pay Secure elements.

[@livetosmileandlaugh5368]

Now, I understand.

[@dcentral]

If my card is with Paypal can I have the same card with ApplePay? Or I need to remove my card from Paypal first?

[@Bombexploid34]

good video man and also i use apple pay because im scared of someone taking a picture of my debt or credit card with my numbers on the front and back

[@rtothec1234]

I have gotten by without it and will try to continue doing so.

[@kristiyantanev3699]

Is there a possibility to add a third-party credit card to a wallet / apple pay ?

[@contenteater]

Yes

[@soumyajitbasulive]

As I am Indian. I am missing Apple Pay as Apple keeps my card data in Apple silicon. Indian Govt. do not want this. Also, Apple holds their backup data (Indian consumers) servers in US locations. For this reason, AMEX has been banned (not issuing new cards) for 1.6 years. 3 days back embargo was lifted. Also, Diners Club and Mastercard were forbidden for more than 6 months as their data backup servers were out of India. I use Samsung Pay and it's awesome. So, for me, Apple devices are made for the US only.😀

[@daniel11111]

There are more countries in the world than just india and the US. The Middle East, Europe, Japan all use Apple Pay, not just the US.

[@chloerose519]

Hello ,really helpful video. Does Apple Pay hides my account number ,phone number (I added my bank acooount to the apple pay) , I mean the privacy of me from the merchants/Sellers or transfers all the info to the seller?

[@LD__]

✔️

[@jonhcontreras]

Is hard 4 u 2 sit still?😅

[@yagurlangelz4532]

Ohhh thanks no wonder why

[@Undecided0]

The funny thing is that I use Apple Pay, Google Pay, PayPal, & Samsung Pay.

[@faithcooke4231]

Is Apply pay considered a third party processor?

[@justindoe7737]

No because it doesn't have anything to do with processing

[@mahalakshmijayanthi9469]

Would like to understand from the NFC wallet readers perspective

[@jarkle87]

It'll look like a regular tap transaction as if you were taping with your physical card.

[@timmothyburke]

I recently purchased a ticket to go to an event and they insist on the ticket being on my phone you can’t print it out and take a paper ticket with you because you know that would be somehow a problem. And then they said do you want to have the ticket on Apple Pay and I selected yes and then they said this will be automatically selected. I grew up using computers and I’m a mechanical engineer I’ve got a high IQ. I can’t figure out what the fuck they’re talking about.

[@francisthegamer5281]

that means it's like PayPal

[@cam_934]

2:52 "Merchants absolutely never want see your plain text card number... they don't want it" LOL one big porky their many merchants will store it against your account for future purchases, subscription renewals that greatly increases the risk to you of CC fraud.

[@jarkle87]

Most merchants store a *token* that the payment gateway would recognize and map to the real card number.

[@HotNHorny]

When you purchase an item Merchant #1 and paid using Apple Pay on the website, can the merchant continue to charge my card maliciously using the same information/token they already received? For instance if I purchased a meal prep subscription and cancelled it, can the merchant continue to charge my card even though I cancelled it? By that, can they intentionally do so? If not, how does it work on these types of service then if you didn’t cancel the service? How can they continue to charge your card every week if it’s “unique” to a single transaction? Shouldn’t you have to re-authorize the next payment for next week’s delivery?