Really found this subject to be a very fascinating read Sarah.  With Apple jumping head first into the mobile payments arena - I was really interested in see how they expect to pull this off.  Otherwise it is a headache not many wanted to deal with until Apple decided to get out in front of this.

This token system is a good idea, but it too as you mention will be compromised as well by hackers in time.  But I guess the industry had to start somewhere - and it is an improvement over magnetic cards ...etc.  

I am not so sure I particularly like using my phone for purchases - though I pay bills occasionally but for the most part I don't want to use my phone for transactions.  I may be in the minority here - as I do not have an iPhone either.

My question is who is governing this new method of payment transmission ?   The FTC ?  Seems to me Apple just created a de facto standard ?

@Some Guy   I have to wonder about this finger print authentication.   How  does this work exactly in a global sense  ?    Is there a database with endless numbers of scanned fingerprints in it ?   

Sounds funny but  I bet I am not too far off.

Ah yes, I do recall now that these security features were supposed to be local to the phone.   Not sure how I feel about that either.   But thanks for the clarification.   

I am also skeptical that this method cannot be cracked, sure it is a major stride forward - but I am a firm believer that anything encoded can be uncoded.

So we 'll just wait until the smoking gun goes off ( again ).

@Some Guy   How do you feel about NFC ?    I am not a big fan since I am not a big fan of mobile payments in general.   I just can't picture myself tapping my phone against some reader to make payments.   

Call me a germaphobe - but that is also a consideration.

Why not just make two-factor authentication required for using Apple Pay?

@GonzSTL    I think that is a really good question.  What is the problem if two-factor authentication is better for security which it obviously is - then why not burn it into the hardware ?   

Manufactuers do this all the time in one way or another, so I don't understand why Apple is dragging it's feet on this.   The only thing I can think of is they don't want to inconvenience their picky customer base.

"...I think that users' hesitation to use biometric authentication is weighed in by phone manufacturers as a factor that could lose potential customers, but if the technique is presented as a requirement only for NFC payments, that hurdle can likely be overcome ...."

@GonzSTL      While I understand your reasoning here, from a consumer perspective I have to respectfully disagree.   I would not be more apt to use a device or method of payment ( NFC ) nor would  this entice me to succumb to biometric authentication.

In my case,  there seem to be too much information already running around the Net without my control - I surly don't want to add my biometrics to it.   But at least you are looking for solutions to the issue - I don't hear anything coming from manufacturers themselves.