How does Apple Pay actually work?

Apple Pay has also been available in Germany since 2018. The payment method makes it possible to pay via wallet with Apple devices. But: How exactly does Apple Pay actually work?

Apple has been offering a contactless payment method since 2014. Around four years later, Apple Pay also came to Germany. Since then, most German banks have gradually cooperated and offered their customers the option to use Apple Pay – most recently Postbank joined in May 2023.

According to statistics, PayPal is still the most frequently used online payment function in Germany – closely followed by Klarna in second place. Nevertheless, around 15 percent of consumers in this country use Apple Pay.

How does Apple Pay actually work?

With Apple Pay, users can pay in brick-and-mortar stores and online directly using an Apple device of their choice. Apple’s promise: “How to pay. Only better.” The company also explains that “the feature replaces bank cards and cash with a simpler, safer and more private payment method, whether in-store, on a website or in an app.”

If you want to use Apple Pay on your iPhone, iPad, Mac or Apple Watch, you can set up the payment method in just a few seconds. To do this, users simply add their credit or debit cards to the pre-installed wallet on the corresponding device. A separate app is not necessary.

Stopping is enough to pay

Once this has happened, consumers can use their cards using their Apple device by holding it up to a device that supports contactless payment. This works in participating stores as well as in taxis or on the subway.

Users can also pay online with cards from their wallet. They can use the function to take out subscriptions and services with one click or to buy apps in the store. In online retail, users can do without payment forms and complete their purchase using Apple Pay. If you want to use the option, you don’t have to pay any fees – neither in stores, online or in apps.

Security: This is how Apple Pay works

According to the consumer advice center, Apple Pay is safer than pure credit card payment in terms of the local radio link – regardless of whether users enter their card details manually or pay at the terminal. This generally applies to all payments made using a mobile device via NFC. According to the consumer advice center, data is transmitted particularly securely over the radio path between mobile devices and the cash register terminal.

Apple also points out the increased security standards. When consumers make a purchase, Apple Pay uses a device-specific number along with a unique transaction code. This means that the respective credit card number is never stored on a device or on Apple servers. In addition, Apple never passes on card numbers to retailers when paying. Purchases should remain private and cannot be traced. Because of Face ID, Touch ID or the personalized code, criminals cannot easily access a user’s iPhone, Mac or Apple Watch.

Which banks support Apple Pay?

In Germany, the following banks offer to use Apple Pay (as of July 10, 2023):

• 1822 direct
• Advanzia Bank
• Adyen
• American Express
• Augsburg Aktienbank
• Bank of America
• Barclaycard
• BBBank
• Bitpanda
• bunq
• C24 Bank
• CleverCards
• comdirect
• Commerzbank AG
• Consors Bank
• Consors Finanz
• Crosscard
• Curve
• Deutsche Bank
• Deutsche Kreditbank AG
• DKB
• Emburse
• Angels and peoples
• fidor BANK
• Fine
• Fleetmoney
• Princely Castell’sche Bank
• Grover
• Hanseatic Bank
• Hercus, Cretaceous
• Vault
• HypoVereinsbank/UniCredit Bank AG
• Card
• ING
• Joompay Europe S.A.
• Klarna
• Clearly
• Landesbank Berlin AG
• LBB ADAC
• LBBW
• LBBW (Mercedes credit card)
• LBBW credit cards
• MLP Banking
• Monese
• Moos
• N26
• National Bank
• Online banking
• Norisbank
• NumberX
• o2 Banking
• OLB
• Open bank
• Payhawk
• PayLife
• Payquicker
• Paysera
• Paysure
• Penta Fintech GmbH
• Pleo
• PSD Banks
• Honestly
• Revolut
• Ruuky
• Solaris Bank
• Pay
• Sparda Bank Berlin
• Sparda Bank Hamburg
• Sparda Bank Hanover
• Sparda Bank Southwest
• Savings Bank
• Stockcard
• Sum Up
• SWAN
• SweepBank
• Targobank AG
• TF Bank
• Ticket Restaurant Edenred
• Tomorrow
• Triodos Bank
• Viabuy
• vimpay
• Viva Wallet
• Vivid Money
• Volksbanken Raiffeisenbanken
• Volkswagen Bank GmbH
• VW
• Wise
• Western Union Digital Banking
• ZEN.COM

In addition, Apple provides a list of all banks worldwide that support the payment function.

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