apple pay - adyenf646c1b5-d431-4335...app integration with the apple pay services. possible...

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www.adyen.com Fast facts Markets In-app and POS United States United Kingdom US and UK issued card holders anywhere in the world. Markets In-app only Australia Canada Australian and Canadian cards issued anywhere in the world. Currencies 187 currencies Status New mobile-centric payment method Relevance level Demonstrate innovation Supported devices iPhone 6, iPhone 6 Plus, iPhone 6S, iPhone 6S Plus, Apple Watch-compat- ible devices, iPad Air 2, and iPad Mini Channels Smartphone, Tablet, POS Who It’s Relevant For Due to its cool factor and frictionless experience, Apple Pay is a PHWKRG RI GLHUHQWLDWLRQ IRU HFRPPHUFH 326 UHWDLOHUV 1RWH that Apple Pay only works for physical goods and services. In-app purchases for digital goods or within iTunes are conducted via Ζ$3 $G\HQ RHUV D IXOOVHUYLFH $SSOH 3D\ VROXWLRQ LQFOXGLQJ DOO reconciliation, reporting and settlement services. :KDW $G\HQ 2HUV Recurring payments Yes Refunds Yes Partial refunds Yes Chargebacks Not for any fraud related reason codes $SSOH 3D\ LV FXUUHQWO\ OLPLWHG WR FHUWDLQ FDUGV LQ GLHUHQW PDUNHWV (although cards are being regularly added). As of November 2015, the following cards are supported in each market: US: Visa, MasterCard, American Express, Discover UK: Visa, MasterCard, American Express Australia: American Express Canada: American Express Adyen supports all the cards above. Apple Pay Payment method guide Apple Pay is a mobile payment and digital wallet service by Apple Inc. that lets users make payments in-app or in-store with select Apple devices. :LWK $SSOH 3D\ PHUFKDQWV EHQHȴW IURP Seamless cross channel solution in-app & in-store Delivering a frictionless customer experience with Touch ID • 99% authorization rate Liability shift on fraudulent transactions

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Page 1: Apple Pay - Adyenf646c1b5-d431-4335...app integration with the Apple Pay services. Possible integration methods include: • Adyen’s iOS Framework: Encrypted Apple Pay data is retrieved

www.adyen.com

Fast facts

Markets In-app and POS

United States United Kingdom

US and UK issued card holders anywhere in the world.

Markets

In-app only

Australia CanadaAustralian and Canadian cards issued anywhere in the world.

Currencies 187 currencies

Status New mobile-centric payment method

Relevance level Demonstrate innovation

Supported devices iPhone 6, iPhone 6 Plus, iPhone 6S, iPhone 6S Plus, Apple Watch-compat-ible devices, iPad Air 2, and iPad Mini

Channels Smartphone, Tablet, POS

Who It’s Relevant For

Due to its cool factor and frictionless experience, Apple Pay is a

PHWKRG�RI�GLHUHQWLDWLRQ�IRU�H�FRPPHUFH��326�UHWDLOHUV��1RWH�

that Apple Pay only works for physical goods and services. In-app

purchases for digital goods or within iTunes are conducted via

Ζ$3��$G\HQ�RHUV�D�IXOO�VHUYLFH�$SSOH�3D\�VROXWLRQ��LQFOXGLQJ�DOO�

reconciliation, reporting and settlement services.

:KDW�$G\HQ�2HUV

Recurring payments Yes

Refunds Yes

Partial refunds Yes

Chargebacks Not for any fraud related reason codes

$SSOH�3D\�LV�FXUUHQWO\�OLPLWHG�WR�FHUWDLQ�FDUGV�LQ�GLHUHQW�PDUNHWV�

(although cards are being regularly added). As of November 2015,

the following cards are supported in each market:

• US: Visa, MasterCard, American Express, Discover

• UK: Visa, MasterCard, American Express

• Australia: American Express

• Canada: American Express

Adyen supports all the cards above.

Apple PayPayment method guideApple Pay is a mobile payment and digital wallet service by Apple Inc.

that lets users make payments in-app or in-store with select Apple

devices.

:LWK�$SSOH�3D\��PHUFKDQWV�EHQHȴW�IURP�

• Seamless cross channel solution in-app & in-store

• Delivering a frictionless customer experience with Touch ID

• 99% authorization rate

• Liability shift on fraudulent transactions

Page 2: Apple Pay - Adyenf646c1b5-d431-4335...app integration with the Apple Pay services. Possible integration methods include: • Adyen’s iOS Framework: Encrypted Apple Pay data is retrieved

www.adyen.com

Setup

Apple Pay acts as a digital wallet, and stores consumers’ payment

cards securely on the device.

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input their card details or take a photo of the front of the card. If

they choose the latter, all of the information is encrypted and sent

to Apple’s servers, where Apple decrypts and determines the card

scheme or card issuer. Apple then re-encrypts the data with a key

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Next, the card scheme, as part of the Apple Pay solution, sends

the encrypted card data, along with other user information, such

as iTunes account activity and device information (e.g. name of

device, location, device history with iTunes) to the issuing bank.

The bank then determines whether the card can be virtualized for

Apple Pay. Please note that only issuers that are integrated with

How it works

Apple Pay will receive these requests. If the issuer approves, the

data of the virtualized card is securely sent to the Secure Element

in the Apple device and the device is ready for use.

Transactions on tablet/smartphone

Apple Pay is an inherently mobile experience, and works on the

iPhone 6, iPhone 6 Plus, iPhone 6S Plus, iPad Air 2, and the iPad

Mini 3. Apple Pay is enabled since the iOS8.1 release, delivered

October 20th, 2014.

To pay within apps, consumers simply select Apple Pay, and place

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Once consumers submit the payment, Adyen processes the

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and functionality are regularly added through iOS updates.

Page 3: Apple Pay - Adyenf646c1b5-d431-4335...app integration with the Apple Pay services. Possible integration methods include: • Adyen’s iOS Framework: Encrypted Apple Pay data is retrieved

www.adyen.com

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steps may differ according to the shopper's choices and the

merchant setup.

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2. Shopper pays with ‘Touch ID’ – where the iPhone (or

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1. After selecting the item they wish to purchase, the

shopper selects Apple Pay (this is an option for

express checkout).

3. The shopper reaches the thank you page.

Page 4: Apple Pay - Adyenf646c1b5-d431-4335...app integration with the Apple Pay services. Possible integration methods include: • Adyen’s iOS Framework: Encrypted Apple Pay data is retrieved

www.adyen.com

POS Transactions

Apple Pay also works on the iPhone 6, iPhone 6S, iPhone 6S Plus

and on the Apple Watch to facilitate in-store payments via NFC

(Near Field Communication). Apple Pay works at any merchant that

is NFC enabled at the Point-of-Sale.

To pay in stores, consumers simply tap their iPhone against

the contactless reader at checkout, and then authenticate the

transaction with Touch ID.

This authentication signals to the phone that it can transmit the

Device Account Number (a token issued by the card network) and

its accompanying “transaction specific dynamic security code”

to the merchant's terminal. The transaction then proceeds as a

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bank network or issuer verifies that the consumer’s payment

information is coming from the correct device and has not been

duplicated.

Security

Apple designed Apple Pay to use tokenization. Apple has worked

directly with credit card networks like Visa and American Express

to move tokenization to their end of the chain.

The Apple Pay setup is the only time actual credit card information

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to the card network, it is decrypted and the card network issues a

token called a Device Account Number (DAN). The DAN is device-

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network sends this DAN to Apple along with other information,

such as the key used to generate dynamic security codes unique

to each transaction. Apple securely stores this information on

the phone in a “secure element”, which is a separate chip within

the iPhone running separated from the phone operating system.

The secure chip is also the only element within the device that can

produce dynamic security codes.

During merchant transactions, Apple Pay does not send the

merchant the standard card number, CVV or expiration date from

the customer. Instead, it only sends the merchant the DAN. This

DAN is translated into a credit card number only when it reaches

the payment network, meaning that only the issuing bank and the

card scheme have information about the card.

Available Integration Methods

At this moment Apple Pay only works with native iOS apps.

Merchants wishing to integrate Apple Pay will do that through

Adyen’s iOS library or Direct API.

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merchants to add Apple Pay support no matter the selected iOS

app integration with the Apple Pay services. Possible integration

methods include:

• Adyen’s iOS Framework: Encrypted Apple Pay data is retrieved

using Adyen software that can be added to the merchant’s

native application

• Decrypted Apple Pay Data: The merchant retrieves the Apple

Pay Data and decrypts it before sending it to Adyen

for processing

• Encrypted Apple Pay Data: The merchants retrieves the

Apple Pay Data and does not decrypt it before sending it

for Adyen for processing

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that should be addressed on a case-by-case basis.