Few months back Apple filed a patent that reveled about their upcoming product called iWallet. This makes other similar initiatives by other providers or vendors look naive. This will arguably change the way mobile payments are being done today and definitely the one that will rule the world as mentioned in the article below.
The creative engineers at Apple have given enough thought to iWallet to make it work both in the scenarios of making transaction in person or remotely. This leads to another revolutionary steps that might replace credit cards, debit cards, gift card completely!
In stead of traditional One Time Password (OTP) that is being sent to a registered mobile device or a security token being used by an external devices; Apple is probably going to use an Application that’s running on iPhone / iPad / or on Mac to validate the transaction is authorized. A simplest thing I can think of is to validate authorization by iTunes password.
More over card holder can enable/ disable automatic authorization for certain merchants, below certain value and flag certain transactions as unauthorized that will immediately notify issuing bank or credit card association. The cardholder-not-present authorization functionality may also be combined with a distinctive gesture for example drawing a character or reverse swiping certain control.
From the screens below it’s clear that third party applications can be enabled for “MobilePay” to use the features of iWallet.