Apple Pay: Everything you need to know - UK Launch

Retailers are preparing for Apple Pay's roll-out across the UK, meaning customers will be able to pay for goods and services with their Apple Watches and iPhones for the first time.

The contactless payment system, first introduced to the US in October last year, is said to be launching on Tuesday July 14, according to leaked retailer documents seen by 9to5Mac.

What is Apple Pay?

Apple Pay uses the near-field communication (NFC) chips embedded in your iPhone 6, iPhone 6 Plus and Apple Watch to pay for goods and services by holding the device near a card reader, as you would a contactless debit card. You can also use Apple Pay to make single touch purchases within apps.

How does it work?

Apple Pay does away with the need to enter a PIN to verify your identity when making a purchase by using its Touch ID sensor, inbuilt into the iPhone 6 and 6 Plus home button. Approaching a card reader automatically wakes up Apple Pay - without having to open an app - and pressing a finger to the sensor verifies the payment. Your phone will vibrate and beep to let you know its been received.

^{Make payments by pressing your finger to the Touch ID sensor}

When paying with an Apple Watch, double tapping the side button triggers your stored cards. Holding the Watch up to the contactless reader makes the payment, and, like on iPhone, it will vibrate and beep to confirm it's gone through.

How do I get started?

You may have used the Passbook app in the past to store your electronic boarding pass when flying, but it's been given a makeover as a one-stop digital wallet. Passbook will be rebranded as Wallet in the next software update iOS 9 due in the autumn, but until then it will remain as Passbook.

^{Under Passbook you can store a number of cards for use with Apple Pay}

Once Apple Pay has been released, you'll be able to store your debit and credit cards digitally within Passbook. You can add the card associated with your iTunes account (the one you may already use to download albums, apps etc) by tapping the Plus sign in the upper right and entering the card security code within the app. The initial card you enter will automatically be your default, but you can select a new default or switch between cards for payments as you please.

How can I add new cards?

To add a card on Apple Watch, you have to open the Apple Watch iPhone app > Passbook & Apple Pay > Add Credit or Debit Card. For iPad, open Settings > Passbook & Apple Pay > Add Credit or Debit Card. You can also remove cards by selecting the one you want to get rid of, and tapping Remove Card.

^{Adding cards to Apple Pay via an iPhone}

So I can't use my iPhone 5s?

You won't be able to use older iPhones with Apple Pay, as they don't have an inbuilt NFC chip. You can theoretically use an iPad mini 3 or iPad Air 2 to make payments, but due to their size they're probably more suited to making in-app payments than within shops. The device must be running iOS 8.1 or later.

However, the Apple Watch works with the iPhone 5 upwards, but it must be running iOS 8.2 or above.

Can I use it to pay for anything else?

Londoners can also use Apple Pay to travel around the capital after Apple struck a deal with Transport for London (TfL), so you can use your watch or phone to travel around the Tube, bus and rail networks.

^{Londoners can use Apple Pay to pay their transport fares}

Is there a limit?

At launch, the majority of payments using Apple Pay will be capped at £20, the same as transactions made using a contactless debit card. However, some retailers will set their own limit and may do away with it altogether in time, according to executive director of mobile at Visa, Jeremy Nicholds. From September, the UK Cards Association says the limit will increase to £30.

What banks and cards are eligible?

American Express, First Direct, HSBC, Ulster Bank, Nationwide, NatWest, Santander and RBS will all be available from launch. Bank of Scotland, TSB, Halifax, Lloyds Bank, M&S Bank and MBNA customers will have to wait until later in the autumn.

Barclays is the only major bank not to support Apple Pay. The lender has tweeted to say it is still holding "constructive" with Apple about the payments system.

Where can I use it?

The technology will be supported in 250,000 shops at launch all around the UK. They include the following well-known outlets, some of which will display the Apple Pay logo. Generally, the majority of shops which currently support contactless payment should be able to process Apple Pay transactions.

• Lidl
• M&S
• Post Office
• Liberty
• McDonalds
• Boots
• Costa
• Waitrose
• Pret
• BP
• Subway
• Wagamama
• Spar
• KFC
• Nando's
• New Look
• Starbucks
• Dune
• JD Sports

^{Stock up on booze at M&S courtesy of Apple Pay}

Supported apps include:

• Addison Lee
• Argos
• Booking.com
• British Airways
• Dice
• Domino's
• Five Guys
• Hailo
• Harris and Hoole
• Hotels.com
• Hungry House
• Just Eat
• Lastminute.com
• Lufthansa
• Miss Selfridge
• Mr and Mrs Smith
• Ocado
• TheTrainline.com
• Top10
• Topshop
• Uncover
• Vueling
• YPlan
• Zalando
• Zara

Is it safe?

Apple is keen to point out how your card numbers are not stored on the device you're using for Apple Pay, nor on their servers. Whilst your most recent purchases are listed in Passbook, an on-going record of your transactions is not maintained.

When a card is added, a unique Device Account Number is created and encrypted. This number is stored in a chip within your device called the secure Element. When you go to make a transaction, the Device Account Number is matched with a dynamic security code unique to that specific payment, which is then processed.

In the event of your iPhone, iPad or Apple Watch being lost or stolen, you can suspend Apple Pay remotely or wipe it fully using Find My iPhone.

Can I return goods I've bought using Apple Pay?

Yes. Just like how you'd return something you'd paid for on debit or credit card, take the item you'd like to return back to the shop and the retailer will be able to transfer the money back into your account by selecting the card you used to make the payment and holding it near the reader. The member of staff can then process your return.