How does Apple Pay work?

A woman smiles as she uses Apple Pay to purchase coffee from a barista at a cafe.Image: A woman smiles as she uses Apple Pay to purchase coffee from a barista at a cafe.

In a Nutshell

If you’re an Apple mobile user looking for a fast and secure way to pay, Apple Pay should be on your radar. But without an Apple device, it won’t be an option for you.
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A mobile payment like Apple Pay can be a convenient alternative to cash, credit cards and checks.

To make a payment, you tap a button with your phone and hold it near the contactless reader. Apple Pay also adds a layer of extra security and reduces the risk of loose cash or credit cards getting stolen.

What is Apple Pay, and how does it work?

Apple Pay is built into all Apple devices including iPhones, Apple Watches, Macs and iPads. This means you don’t have to download a new app to use it. It’ll allow you to pay for purchases in stores, online and within apps that accept contactless payments.

Once you add your credit, debit or prepaid card to the Wallet app on your device, you’ll be ready to shop with Apple Pay.

Where can you use Apple Pay?

Apple says more than 85% of U.S. retailers accept Apple Pay, so you can use it many places. It’s a convenient way to pay for anything in stores, online and in apps. You may use Apple Pay for everyday purchases as well as one-time, big-ticket expenses.

As long as a merchant accepts contactless payments, Apple Pay is an option.

If you travel abroad, Apple Pay is accepted in other countries. But with international use, you may be on the hook for bank transaction or credit card fees.


What’s next?

Digital banking has increased the number of options you have for mobile payments. Before you choose the payment methods you prefer, make sure to research any fees and figure out your level of comfort with any safety measures the app provides.


About the author: Anna Baluch is a freelance personal finance writer from Cleveland, Ohio. You can find her work on sites like The Balance, Freedom Debt Relief, LendingTree and RateGenius. Anna has an MBA in marketing from Roosevelt Un… Read more.