Is Apple Pay Safe? Yes, Here's Why

Apple Pay is a convenient, card-free way to pay for goods and services, both online and offline. Not having to carry your debit or credit cards and having an encrypted payment option are definite bonuses that immediately increase your physical security. But what about your digital security?

Apply Pay utilizes various forms of encryption to safeguard your payment details. In fact, most scams involving Apple Pay are due to human error. This is why using the best identity theft protection service can add an extra layer of security to your Apple Pay transactions as well as safeguard you against other forms of online fraud.

If you want to know more about how Apple Pay works, what scams are possible, and what security measures Apple takes, read on below.

Is Apple Pay safe to use?

Yes, Apple Pay is a safe and convenient way to pay for online and in-person purchases, as well as send money anonymously or easily. Many websites and brick-and-mortar stores integrate seamlessly with Apple Pay. Those integrated stores exchange encrypted tokens specific to each merchant with your bank rather than actual account information, making your bank details invisible.

Apple Pay uses multi-factor authentication (MFA) by integrating biometric authentication. Your Face ID, Touch ID, or Optic ID is required to authenticate your purchase. If those security methods fail, you’ll have to enter your Apple ID password. All of this is protected by an AES 256-bit encryption protocol, which keeps your card information safe.

What data does Apple Pay collect or share?

According to Apple, the details collected are those that you input yourself.

You can check iPhone > Settings > Wallet & Apple Pay > Transaction Defaults to see what details Apple stores about you.

While it notes that merchant keys are usually exchanged, there is also the possibility that Apple may provide the merchant with additional information if requested. In our experience, Apple Pay automatically fills in your shipping and billing information based on the information you’ve provided. This makes up the majority of the other shared information.

• Transaction details: This involves the merchant key, unique to each merchant that accepts Apple Pay or their payment processing partner. The merchant key is decrypted only by the merchant or their payment processor.
• Device information: Some of your device information is transferred during processing, including your device account number and a dynamic security code that’s specific to that individual transaction.
• Personal information: This may include your name, address, phone number, email, and any other information you’ve entered. Typically, this information is used to ship your product and authenticate your identity.

Is there any risk with Apple Pay?

The risks associated with Apple Pay are typically due to human error rather than a failure of Apple’s encryption or security. Phishing, social-engineered scams, and fake Apple Pay requests are some of the most prevalent.

You can also lose your phone and have your Apple Pay accessed if you don’t have the proper security measures enabled on your phone. This is where identity theft protection would come in handy, protecting you from scams and potential theft.

While hacking is rare, it may be possible if you don’t use proper security. Connecting to public Wi-Fi while having the MFA or password protections turned off on your Apple Pay can potentially result in a scam. This is more likely if you add a card to your Apple Pay while connected to an unsecured network.

Potential Apple Pay vulnerabilities

• Phishing scams
• Fake Apple emails
• Requests for gift cards
• Fake Venmo, CashApp, or other payment apps
• Lost, unsecured phone
• Using shared internet without security

How does Apple Pay work?

Apple Pay uses a device-specific number and a transaction code unique to each transaction to authenticate your purchase. These codes are encrypted and can be decrypted only by the vendor accepting your payment.

To actually use Apple Pay, you must first input your payment information. We have our debit card, credit card, and farecard all attached to our Apple Pay in our Apple Wallet, effectively turning them into virtual credit cards. When you want to make a purchase, the default setting is to double-click the power button on the side of your phone and authenticate with Face ID.

Our Apple Watch actually doesn’t require a click when we step on the bus. Since we preauthorized it, all we have to do is touch our watch face to the payment reader on the subway, and our payment is accepted.

FAQs

Bottom line: How trusted is Apple Pay?

Apple itself is a secure and trustworthy company that operates with top-tier security. The company has invested its reputation in its Apple Pay feature, which means you can trust that they are doing everything possible to maintain a secure payment system. There has never been an instance where the system was hacked, and almost all fraudulent claims are due to human error, typically on the user's part.

If you want the ease and convenience of Apple Pay, but are still concerned about security, consider using one of the best identity theft protection services available. You’ll feel secure knowing you have identity theft insurance and purchase protection, while also safeguarding your life both offline and online.