• Federal Payment Cards to Become Compatible with Apple Pay



    The White House recently revealed that federal payment card users including Social Security and veterans benefit debit cards will soon be made compatible with Apple Pay. The announcement was made in connection with President Barack Obama’s cybersecurity summit in Silicon Valley where Tim Cook spoke on Friday. The deal applies to the government’s Direct Express payment network and cards issue through GSA SmartPay.

    The move as a whole may be viewed as something of an endorsement of Apple Pay by the US government. The cards are responsible for $26.4 billion worth of transactions every year. Apple Pay was originally developed in collaboration with existing credit card companies and banks meaning that support for the service and its secure tokenization method must come from third party card providers.

    Apple on the other hand has been boasting about the security of its new Apple Pay service. More specifically the fact that credit card numbers are never exchanged when authorizing transactions with merchants. Instead a different number for making payments is generated in place of a merchant receiving a credit card number, CVV and expiration date. The company felt confident about their mobile payment initiative but even Cook himself said he was surprised with the rapid adoption that Apple Pay has seen since its debut in October of 2014

    During the quarterly earnings conference Call, Cook declared that 2015 will be “the year of Apple Pay” with 750 banks and financial institutions already participating. As of right now, Apple Pay already accounts for 80% of contactless transactions at Panera Bread while Whole Foods saw a 400% increase in NFC-based payments since the launch of the service.

    We’ll have to wait and see what moves Apple makes next.

    Source: Bloomberg
    This article was originally published in forum thread: Federal Payment Cards to Become Compatible with Apple Pay started by Akshay Masand View original post
    Comments 6 Comments
    1. Silverado1987's Avatar
      Silverado1987 -
      Oh please, i wait for the day they make EBT for apple pay . only because of the irony. i work in retail and i see so much screwed up stuff this would top the cake.
    1. sheltons.iphone's Avatar
      sheltons.iphone -
      Quote Originally Posted by Silverado1987 View Post
      Oh please, i wait for the day they make EBT for apple pay . only because of the irony. i work in retail and i see so much screwed up stuff this would top the cake.
      So what are you actually saying in English?
    1. SpiderManAPV's Avatar
      SpiderManAPV -
      Quote Originally Posted by sheltons.iphone View Post
      So what are you actually saying in English?
      If you need government assistance why do you have the newest iphone?
    1. mulezsti's Avatar
      mulezsti -
      Quote Originally Posted by SpidermanAPV View Post
      If you need government assistance why do you have the newest iphone?
      When I first read the title of the thread I was thinking along the lines of what you said. But after reading the thread I believe this is talking about Government Issued Credit Cards. For instance I am in the military and everyone in the military is issued a Citi Government Travel Card. And I am sure all the other Government Agencies do as well. I think what they are saying is my Citi card will soon be upload-able to Apple Pay. If that's the case this is great.
    1. exNavy's Avatar
      exNavy -
      Quote Originally Posted by Silverado1987 View Post
      Oh please, i wait for the day they make EBT for apple pay . only because of the irony. i work in retail and i see so much screwed up stuff this would top the cake.
      I hear you! I used to manage in retail and it was simply disgusting to see EBT customers come in flashing all their bling while using that card. The used their EBT to purchase so much junk food and then they'd get a cash advance from the card so that they could make their alcohol and tobacco purchases. So yeah it would be the icing on the cake if they came in waving their new iPhone for an EBT transaction.
    1. bigboyz's Avatar
      bigboyz -
      "They System" can and will be abused. Its free $$ to them. Something for nothing comes to mind. No wonder I was taught to work for what I have because I would appreciate it more..thanks mom and dad.
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