Top perks
Convenience
Apple Pay is built into iOS devices and is easy to set up. It allows you to turn your phone into your wallet and securely store all your credit and debit cards. You can also use it to make online and in-app purchases on your iPhone, iPad, Apple Watch, or Mac with one-click checkout.
Widely accepted by merchants
Apple Pay is available wherever contactless payments are accepted. More than 85% of U.S. retailers accept Apple Pay. It's also supported in about 80 countries and territories throughout the globe.
Cash back when combined with your Apple Card
While Apple Pay does not offer rewards on its own, if you combine Apple Pay with your Apple Card, you can earn 2% daily cash back when you use your iPhone or Apple Watch to pay. You can earn 3% daily cash back at Apple and select merchants when using your Apple Card with Apple Pay. Select merchants include big names like Nike, Panera Bread, T Mobile, Uber, Uber Eats, and Walgreens, among others.
Safer than paying with a physical card
Apple doesn't store your credit or debit card numbers. Instead, your bank or credit card issuer creates a Device Account Number that's encrypted and is never stored on Apple servers or backed up to the iCloud. Merchants don't receive your credit card numbers, either. Instead, they receive the Device Account Number and a security code that's unique to the transaction.
Apple Pay's security features make it significantly safer than paying with a credit or debit card. Merchants don't receive your card info, and the data that Apple Pay stores is encrypted so you're not vulnerable to hackers.
Protections if you lose your phone
If you lose your device or it gets stolen, you can prevent unauthorized transactions by marking your device as lost. You'll lock your device with a passcode and disable Apple Pay on it.
New BNPL option for splitting purchases
In March, Apple made its foray into the buy now, pay later (BNPL) space with Apple Pay Later. The service allows users to apply for an Apple Pay Later loan of $50 to $1,000 and split purchases into four payments over six weeks with no interest. Of course, it's essential to use BNPL responsibly and avoid making purchases you can't afford.
What could be improved
Not available on Android devices
Apple Pay works pretty seamlessly for iPhone users, as it's built into iOS devices, however, it's not available on Android devices. Unlike Google Pay, which has both iOS and Android apps, there's no Apple Pay app.
Not available for store credit cards
While most major credit cards are compatible with Apple Pay, you can't use Apple Pay with closed-loop store credit cards, i.e., those that you can only use at a specific retailer.