December 6, 2014
A number of credit unions in U.S. are currently working towards adopting Apple Pay NFC Payments, as revealed by Co-op Financial Services. The company announced that it is a Visa 'Engaged Issuer-Processor, authorized to immediately service the enrolment of credit unions in Apple Pay. Co-op has been active with both Visa and MasterCard since the introduction of Apple Pay in September to enrol its clients in the program. The company already has credit unions in the implementation validation process at Visa and MasterCard.
The current issuers that have joined the Apple Pay bandwagon include L&N Federal Credit Union, UW Credit Union and M&T Bank (source: Apple Insider). With these three additions, Apple Pay adds support for 21 issuing banks in U.S. Last month, the American First Credit Union had rolled out Apple Pay support for its Visa cards. Only a handful of major banks supported Apple Pay when it initially launched, including Bank of America, Capital One, Chase, Citi and Wells Fargo.
Visa and MasterCard both have cited that Apple Pay will further support a number of regional banks. Last month, Navy Federal, one of the world’s largest credit union, had announced Apple Pay integration. Co-op is also focusing on industry education concerning Apple Pay as it conducted webinars in last two months on the wallet service.
Banking officials had revealed their consent towards Apple Pay in an exclusive interview with The Daily Dot. Eventually, banks would bear the liability for purchases (both face-to-face as well as in-app) made via Apple Pay. Apple Pay’s partner banks feel that the new payment system is secure enough to offer customers the same level of protection that they get with standard credit card payments.
Apple Pay has already incorporated multiple security features which include Touch ID fingerprint authentication, NFC, Secure Element data storage and tokenization for transaction processing. Top banking officials believe that Apple Pay has the potential to make tokenization a part of the standard banking model. Tokenized transactions basically replace credit card info with runtime generated Device Account Numbers.