Apple Pay, Tokenization and The Payments Process

John Beatty on network-level tokenization and mobile payments:

Apple Pay marks the first time a popular operating system is making payments a platform service for real-world, non-digital-good transactions, in a broad, inclusive manner that is compatible with the mainstream payments processing industry.

With nearly four years of consulting as the iOS Architect for Softcard (formerly known as Isis), I’ve seen firsthand the complexity of building a payment solution from the ground up, further complicated given no native NFC support on the iPhone.

If Apple covers the technical details (NFC and secure element), the relationship side of things (issuers, merchants, etc) and provides a robust API for integration into iOS apps, I agree with John’s final remarks about Apple Pay:

I expect a huge amount of innovation in real-world mobile commerce as a result over the coming years because of the revolution that Apple Pay is starting.