Can Technology Make Payments More Secure?

The video explains how Apple Pay works, focusing on its security features like tokenization and biometric ID. It discusses the role of Visa and banks in verifying cardholders and the transition to chip technology. The video highlights the importance of securing both physical and digital transactions and the challenges retailers face in adapting to new payment technologies. It also compares the effectiveness of tokenization and biometrics in reducing fraud risk.

What is the initial step to use Apple Pay on an iPhone?

• Download a special app

• Take a photo of your card

• Enter card details manually

• Call your bank for activation

What is the main advantage of chip technology in cards?

• It can be used without a PIN

• It is cheaper to produce than magnetic strips

• It generates a one-time code for each transaction

• It allows for faster transactions

How does tokenization enhance payment security?

• By requiring a PIN for every purchase

• By creating a unique digital account number for each transaction

• By encrypting the cardholder's name

• By storing data on a secure server

Why might Apple Pay reduce the risk of data breaches?

• It uses a static password system

• It requires a signature for every transaction

• It eliminates the need for a physical card

• It prevents retailers from storing card numbers

What is a potential drawback of using fingerprint authentication alone?

• It can be easily replicated

• It requires frequent updates

• It is considered static data

• It is not compatible with all devices

What is the expected percentage of chip-based transactions by the end of 2015?

• 30%

• 40%

• 20%

• 10%

How does Apple benefit financially from Apple Pay transactions?

• By charging users a monthly fee

• By taking a portion of bank fees

• By increasing the price of iPhones

• By charging retailers a transaction fee