Ten years ago, it was difficult to imagine being able to pay for coffee with your timepiece. As the Apple Watch is launched and landing on our wrists, we marvel in the capability of not only the functions of such timepieces, but the ability to pay so effortlessly.
ApplePay™ and the upcoming Android Pay and Samsung Pay are all one form of a Digital wallet, allowing you or your customers to use your phone, watch or other digital device for a quick and convenient payment option. They are also infinitely more secure than a traditional credit or debit card. If you're like many first-time users, that security is surprising.
In order to use digital payments, a user must first upload their card information into their device. For many, entering payment information onto their phone seems like one more road to fraud. Not so, says BECU Payments Director Ken Myhra. “Your information is immediately changed and takes on an identity separate from your credit or debit card number,” Myhra explains. A separate identity? It's all in the “token”: a unique code used in place of the actual debit or credit card number.
“When you register your card to a device, a token is created and the actual card number is changed,” says Myhra. A card number of 1234 5678 9101 2345 might have a token number of 1098 7652 4321 9201: completely different. Such function is safer and more secure because your actual card number is never used.
Technology is quickly changing – stay informed! Check back with the BECU News Center for updates to our emerging Digital Wallets column.