Navy Federal to partner with Apple for new mobile payment system

From a foray into mobile payments to a new smartwatch, Apple announced a bevy of new products and services that represent the future of its business.

By Abha Bhattarai

Beginning next month, customers will be able to pay for purchases directly from their iPhones and Apple Watches, thanks to a new mobile payment service announced by Apple last week.

Two local institutions — McLean-based Capital One and Vienna-based Navy Federal Credit Union — are among the 11 banks, credit unions and credit card issuers partnering with Apple for the roll-out of Apple Pay.

To purchase an item using the new service, users must add a credit or debit card to their accounts. Instead of storing card numbers, Apple assigns a unique account number to the user’s device. When it’s time to pay, customers hold their phone near a special reader and put their finger on the device’s Touch ID, a fingerprint reader that identifies the individual.Credit and debit card numbers are not stored anywhere on the device, and Apple does not collect users’ purchase history.

“When you’re using Apple Pay in a store, restaurant or other merchant, cashiers will no longer see your name, credit card number or security code, helping to reduce the potential for fraud,” Eddy Cue, Apple’s senior vice president of Internet software and services, said in a statement.

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