iOS 16: How Apple plans to tackle credit card fraud

When shopping online, Apple will apparently offer to hide the credit card number and use a virtual card instead.

 iOS 16: How Apple plans to tackle credit card fraud

Apple is preparing a new security feature for iOS 16, iPadOS 16 and macOS 13: In future, the Safari browser will offer the option of using a virtual credit card instead of the stored credit card when shopping online – and thus no longer having to transmit the actual credit card number to the seller. The first parts of the function have already been implemented in the third beta of iOS 16, and there are also detailed references in the code of the operating system.

Credit card numbers are no longer published

The manufacturer is apparently using this Apple Pay technology: A unique device account number is created for each card when it is stored (“tokenization”), which is then used for payments together with changing, automatically generated security codes – instead of the actual card number and security code. In order to make this possible for the credit cards stored in the Safari browser, “limited information” is sent to the card network to create the virtual card, according to the iOS 16 code.

Ultimately, online Payments are secured at merchants who do not offer Apple Pay as a payment method. At the same time, Apple wants to use the security function to further promote the spread of Apple Pay: When the virtual card is created, the credit card is automatically set up for Apple Pay and can then be used for payments with Apple Pay. The prerequisite is that the respective card issuer supports this. Apple has not yet officially announced the function, but it remains to be seen whether it will be available when iOS 16 is launched in the fall. Google has already promised a similar functionality for Google Pay, which is to be integrated into Chrome and Android.

Apple Pay is still quite rare in online retail

Apple Pay is in Germany It’s now widely available on the market, with the exception of Postbank and Santander, all major banks support the service, but there are still many providers in online retail where payment with Apple Pay isn’t possible. For retail purchases, Apple Pay is the only mobile payment service that is allowed to use the iPhone’s NFC interface. The EU sees this as a possible infringement of competition.

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