Many people believe that Apple Inc. (NASDAQ:AAPL)’s Pay product is the solution to the hack attacks on credit cards. JPMorgan Chase & Co. (NYSE:JPM) computer networks were hacked earlier this year and some reports suggest that nine other unnamed financial institutes were hacked. Wall Street Journal’s Robin Sidel talked on Fox Business about the how Apple Pay can help in credit card hack situation.
Some reports even suggest more that 100 million American’s personal information might have been compromised in the alleged hack attacks on JPMorgan Chase & Co. (NYSE:JPM) and nine other financial institutes. Is Apple Inc. (NASDAQ:AAPL)’s Pay product the way around the problem of credit cards being compromised?
“Will help the problem, because the technology in it that makes your card information not visible to the bad guys. So the bad guys can still try to break in, but they won’t get anything that’s worthwhile,” Sidel said about Apple Pay’s technology.
Sidel added that Apple Inc. (NASDAQ:AAPL)’s pay product is not the only one that has the technology to hide the credit card information from the hackers. She mentioned that there is another possible solution to this issue, which is the idea of embedding a computer chip into the credit cards. She added that many banks including Bank of America have started looking at this technology to potentially avoid the hack attack problems.
Sidel mentioned that by the end of 2015, 577 million credit/debit cards will have computer chips embedded. She pointed at Bank of America’s announcement of replacing expired debit cards with chip embedded new debit cards.
Sidel thinks that most of the people would still prefer using their credit cards instead of phone payment as in Apple Inc. (NASDAQ:AAPL)’s pay product due to the compactness of a credit card. But she added that the younger generation might be interested in using the iPhone 6 to make their payments.
“[…] But if all you want to do is walk outside and just carry your phone, instead of your wallet, Apple Pay is definitely a solution,” Sidel mentioned.
As of 30 June 2014, Carl Icahn‘s Icahn Capital Lp hold around 52.8 million Apple Inc. (NASDAQ:AAPL) shares.