According to Apple, the mobile payment method Apple Pay is only available in the US so far. Is this really true? Netcetera expert Thomas Fromherz shares his experiences with Apple Pay.

1. Field Report
Apple Pay with US Credit and Debit Cards in Switzerland
March 3, 2015 – Dr. Thomas Fromherz

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 Registration
 Purchase Transactions with Apple Pay
 Apple Pay in In-App E-Commerce Transactions
© 2015 Netcetera AG
Agenda

3. Netcetera | 3© 2015 Netcetera AG
Registration of Card for Apple Pay

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 Switch region to “Vereinigte Staaten”
 “New” Passbook w/ Apple Pay
© 2015 Netcetera AG
Get Passbook with Apple Pay Capability (cont.)

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 Open PassBook
© 2015 Netcetera AG
Registration of Card for Apple Pay

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 Click “Set Up Apple Pay“
 Click “Use Card on File with iTunes”
© 2015 Netcetera AG
Registration – Citi MC, Card Data Input by Typing

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 Enter security code
 Verifying …
 Agree to T&C
© 2015 Netcetera AG
Registration – Citi MC, Card Data Input by Typing (cont.)

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 Verifying  Accept T&C
 Card verified
 3 identification options
 Call Citi Apply Pay number, enter
PAN, ZIP, Citi password 
automatically verified (or
forwarded to call center agent)
 Citi (system?) calls number on file
 Citi (system?) texts number on file
© 2015 Netcetera AG
Registration – Citi MC, Card Data Input by Typing (cont.)

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 Card ready for Apple Pay
 Complete registration:
< 5 min
 Activation (from successful
identification to “ready message”):
< 5 sec
© 2015 Netcetera AG
Registration – Citi MC, Card Data Input by Typing (cont.)

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 Under “i”  card info screen
 Direct link to Citi mobile app
 On/off switch for card notifications
 Transaction history
 Contact Citi (link to initiate call)
 Card number (PAN), last 4 digits
 Device account number (DAN), last
4 digits
 Remove card
© 2015 Netcetera AG
Registration – Citi MC, Card Data Input by Typing (cont.)

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 Pressing camera icon activates
automatic recognition of card data
from picture
 Security code (CVV) to be entered
manually
© 2015 Netcetera AG
Registration – Citi Amex, Card Data Input by Camera

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 Enter security code (CVV) manually
 Verifying  Accept T&C
© 2015 Netcetera AG
Registration – Citi Amex, Card Data Input by Camera
(cont.)

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 1 identification option
 Call Citi Apply Pay number, enter
PAN, ZIP Citi password
 forwarded to call center agent
 verification of identity
  Apple Pay activation by agent
 Card ready for Apple Pay
 Complete registration: < 5 min
 Activation: < 5 sec
© 2015 Netcetera AG
Registration – Citi Amex, Card Data Input by Camera
(cont.)

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 E-Mail with additional instructions on
how to activate card for Apple Pay
© 2015 Netcetera AG
Registration – Citi MC, Amex, Customer Communication

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 E-Mail with activation confirmation
and further information
© 2015 Netcetera AG
Registration – Citi MC, Amex, Customer Communication
(cont.)

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 Pressing camera icon activates
automatic recognition of card data
from picture
 Security code (CVV) to be entered
manually
© 2015 Netcetera AG * BofA = Bank of America
Registration – BofA* Debit, Card Data Input by Camera

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 Verifying  Accept T&C
 1 identification option
 Call BofA Apply Pay number
 forwarded to call center agent
 verification of identity
  Apple Pay activation by agent
© 2015 Netcetera AG * BofA = Bank of America
Registration – BofA Debit, Card Data Input by Camera
(cont.)

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 1 identification option
 Call BofA Apply Pay number
 forwarded to call center agent
 verification of identity
  Apple Pay activation by agent
 Card ready for Apple Pay
 Complete registration: < 5 min
 Activation: < 5 sec
© 2015 Netcetera AG * BofA = Bank of America
Registration – BofA Debit, Card Data Input by Camera
(cont.)

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 Under “i”  card info screen
 Direct link to BofA mobile app
 NO On/off switch for card
notifications
 NO Transaction history
 Contact BofA (link to initiate call)
 Card number (PAN), last 4 digits
 Device account number (DAN), last
4 digits
 Remove card
© 2015 Netcetera AG * BofA = Bank of America
Registration – BofA Debit, Card Data Input by Camera
(cont.)

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 E-Mail with activation confirmation
and further information
© 2015 Netcetera AG * BofA = Bank of America
Registration – BofA Debit, Customer Communication
(cont.)

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 All 3 cards in PassBook
and in “Settings” app under
“Passbook & Apple Pay”
© 2015 Netcetera AG * BofA = Bank of America
Registration – All 3 Cards in PassBook and Settings App

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 In “Settings” app under “Passbook &
Apple Pay”
 Set default card
 Add 1 billing and 1 shipping address
 Add 1 phone number
 Add 1 e-mail address
 All can easily be picked from
address book entries
 Addresses and contact details for in-
app purchases
© 2015 Netcetera AG
Registration – Add Billing & Shipping Address and
Contact Details

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Contactless Payment at Migros POS

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 Video shows transaction with
changing card from Amex to
MasterCard
© 2015 Netcetera AG
Contactless Payment at Migros POS

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 Holding iPhone against POS, screen
off
 Screen turned on, verified Touch ID
(or not )
 Transaction successful
 Notification on lock screen
 Sliding notification opens card info
screen (PassBook/Setting) (s. slide
after next)
© 2015 Netcetera AG
Contactless Payment at Migros POS

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 Card info screen can be accessed via
PassBook (pictures left) or via
“Settings”  PassBook & Apple Pay”
 PassBook shows last transaction on
card screen and card info screen (see
next slide)
© 2015 Netcetera AG
Contactless Payment at Migros POS (cont.)

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 Card info screen shows latest
transactions
 Citi Mobile app shows transactions as
“pending”
© 2015 Netcetera AG
Contactless Payment at Migros POS (cont.)

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Some Details

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 When tapping the terminal Apple Pay
wakes up and displays default card;
 If TouchID not pressed, transaction
doesn’t happen
 User can choose another card with
typical Passbook gesture also used
for selecting boarding cards, hotel
reservations, or movie tickets
 Selected card is used for transaction
(s. movie)
© 2015 Netcetera AG
Change of Card when Paying

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 Transaction amount is sent back via
NFC for MasterCard, i.e. always
available, even without data
connectivity (flight mode on)
 If no data connectivity available,
merchant name not available
© 2015 Netcetera AG
Merchant Names vs. Transaction Amount

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 Once data connectivity available
(flight mode off), merchant name is
sent to iPhone (both notification and
transaction history)
 Assumption: sent by issuer
© 2015 Netcetera AG
Merchant Names vs. Transaction Amount (cont.)

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 For Amex, amount apparently not sent
back via NFC but - converted into
US$ - via data connectivity from
issuer;
© 2015 Netcetera AG
Merchant Names vs. Transaction Amount (cont.)

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 High-value transaction did not require
PIN at terminal
 Possible explanation: US cards are
mag-stripe only and TouchID
replaces signature
© 2015 Netcetera AG * BofA = Bank of America
High / Low Value Transactions

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 MasterCard: Contactless EMV
 Amex: Contactless Magstripe
 But: press says “contactless EMV
only”
Acquiring Records
© 2015 Netcetera AG
Contactless EMV vs. Contactless Magstripe

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Acquiring Records – KKiosk
DAN

36. Netcetera | 38© 2015 Netcetera AG
Acquiring Records – KKiosk
DAN
Contactless Magstripe

37. Netcetera | 39© 2015 Netcetera AG
Acquiring Records – Test Terminal
DAN
Contactless EMV

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 Aiming was not an issue; transactions
were done without even thinking
about how to hold iPhone to terminal
 Transaction at Migros terminal
(Yomani) was faster than at Kkiosk
(Verdi);
 The latter required some patience &
confidence that transaction would go
thru;
Empiric judgment
© 2015 Netcetera AG
Aiming & Transaction Time

39. Netcetera | 41© 2015 Netcetera AG
Apple Pay in E-Commerce aka In-App-Transactions

40. Netcetera | 42© 2015 Netcetera AG Quelle: http://www.apple.com/apple-pay
Apple Pay in Apps

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 First screens of Apple Store app
 Purchase did not go thru due to
address problem
© 2015 Netcetera AG
Apple Pay in Apple Store App

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(c) 2015 Netcetera AG
The content of this presentation is copyrighted material. Reproduction or publication,
in whole or in part, by third parties without prior written permission of Netcetera is
prohibited.

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thomas.fromherz@netcetera.com
+41 44 297 58 18
Dr. Thomas Fromherz – Director Payment & Card Services
Contact

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