The receiver looks like a teacup saucer-sized disc connected to the top of some credit card swiping machines.
Unlike Google Wallet, which uses PIN protection, Apple Pay authenticates your deal with a fingerprint scan on the home button. In some instances with Apple Pay, you have to both scan your fingerprint as well as enter a PIN into the card reader (as was the case when I made a recent purchase along with a PIN-protected debit card.
Before you can make use of Apple Pay, you'll have to prepare it on your phone, and make sure you know which card is the default for spending. You'll also need to be sure your credit card works together with Apple Pay, as not all banks are supported. I'll explain below how to figure out the cards that will work.
First, it is important to make sure your iPhone 6 or iPhone 6 Plus is running at least iOS 8.1.
Next, in case you haven't set up the fingerprint scanner, go to Settings > Touch ID & Passcode, and select Add a Fingerprint.
In that same setting area, make sure Touch ID is toggled on for Apple Pay, which appears toward the top.
Open Passbook. Tap the plus sign at the top right to add a credit or debit card. Follow the prompts. You'll have to enter some basic information, such as your default billing address and phone number.
When it comes time to add credit and debit cards, I recommend using the camera option, which lets you scan the card to immediately fill in the 16 digits so you don't have to type them. You will have to type your security code, however.
As of this writing, some cards are completely supported; some require that you authenticate them by setting up the particular bank's own app; and some aren't supported at all. For instance, my Chase debit card with a Visa logo was fully supported and very easy to set up. My Capital One credit card required authentication through a secondary app. And my Discover card was not permitted because it's not supported yet.
When you scan the card to add it to Passbook, the app will tell you instantly if the card is not supported. If the card requires verification, you'll see a message to that effect when you select it.
Where You Can Use Apple Pay
It's difficult to know where you can use Apple Pay because there isn't a geolocation-based locater for businesses that support it in Passbook. The long and short of it is that you can use it anywhere you find a PayPass reader. That's the receiver I mentioned earlier. Once you know to look for PayPass readers, you'll probably notice more of them, but they are already available at many chain pharmacies, some major grocery stores, and fast food restaurants.
PayPass (which is run by MasterCard, but does not require a MasterCard credit card to use) has this store locator website that lets you look for organizations nearby that use its system. While there is a PayPass Locator app for Android, I haven't seen one yet intended for iOS, though I'm sure that will change in no time.
How to Use Apple Pay in the Field
If you have more than one payment card set up in Passbook, make sure you know which one is the default option! Go to Settings > Passbook & Apple Pay, and you'll see the list of cards that are included. Right below them you'll see Default Card. Tap there to change the default.
When you're looking towards at a store with PayPass, just touch your phone to the PayPass receiver. The Passbook app will immediately start the transaction, and it will ask you to verify it by providing your fingerprint. A fingerprint on the screen will fill in with red lines as the transaction takes place.
If your card is PIN-protected, you may still need to respond to a few prompts on the card reader's screen and keypad, such as entering the PIN and confirming the transaction price.
When the transaction is complete, you're done. In a few seconds, you'll see a history of the transaction appear in Passbook and a time and date stamp next to it.
Shopping in Apps
Apple Pay works in select apps, including the recognized Apple Store app, which is where I tried it. When you begin the checkout process, you'll see an option to pay with Apple Pay (which in the Apple Store app appears as the logo for Apple next to the word "Pay").
When you tap that, a list of options appears, including your shipping address and method of delivery. It's a one-stop pop-up for checkout, and very convenient. The final step is simply scanning your fingerprint.
I tried to take a screenshot of this page, but iOS 8.1 wouldn't let me, which is good from a perspective.
In addition to employed in the Apple Store app, Apple Pay will work in the following apps as well: Airbnb, Chairish, Fancy, Groupon, Hotel Tonight, Houzz, Instacart, Lyft, OpenTable, Panera Bread, spring, Staples, Target, Uber, and a few others.
Paying in iTunes (Not Apple Pay)
You can also use Touch ID to pay for purchases in iTunes, but this system is divide from Apple Pay. The first time you try to make an iTunes purchase, you'll see the Touch ID option appear immediately. Follow the prompts, and you'll see that it brings you to a verification page that connects to your Apple ID payment information, not Apple Pay. It's a little confusing, but these are two separate systems right now.
How to Remove Cards from Apple Pay
If you try out the service and decide you don't need to like it, or just want to remove some of your payment information, here's how to do it.
Go to Settings > Passbook & Apple Pay and select a card.
At the end, look for an option to Remove Card, in red. Tap that, and confirm by tapping Eliminate when prompted.
Is Apple Pay Safe?
Most people who have never used a mobile payment app will want to know if using Apple Pay is safe.
According to Apple, the company "doesn't save your transaction details. With Apple Pay, your payments are exclusive. Apple Pay doesn't store the details of your transactions so they can't be tied back to you. Your most recent purchases are kept in Passbook for your convenience, but that's as far as it goes."
Apple adds that because you never show anyone your card, and the clerk never sees your name, your credit card digits, or any other identifying information. You may, however, nevertheless encounter a sales clerk who will look for identification and want to compare the signature on the back of your card to that of your ID, in which case you'll have to pull out your card or talk your way out of it.
There's certainly more analysis on the security of Apple Pay that I encourage consumers to consider.