Apple has a new vision, and that is to replace your wallet with Apple Pay. With $12 billion spent via a plastic card every day in the US, they plan to begin with payment methods and using NFC, you'll be able to tap-to-pay using your new iPhone. This means we no longer will have to rely on the "vulnerable" magnetic stripe used on most credit and debit cards today.
Apple says this will work because they are focused on the user experience, while other companies have their own self-interests at heart. You'll simply hold your iPhone to a payment terminal, touch your thumb to the Touch ID sensor, and make your payment. Using what's called a Secure Element, all your data and information is stored securely and encrypted right in Passbook. You can import your existing cards from iTunes, and adding a new one can be done by shooting a picture.
Apple Pay will debut in the US, with MasterCard, Visa, American Express, Citibank, Bank of America, Capital One, Wells Fargo, and Chase as initial partners. Apple Pay payments will be accepted at Macy's, Bloomingdales, Staples, Subway, Duane Reade, McDonalds (even in the drive-thru), Walgreens, Whole Foods, Apple Store , Disney parks and stores and Toys 'R Us by Christmas.
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