Friday, February 13, 2015

The US Federal Government's hopping on the Apple Pay bandwagon

The federal government of the United States is picking up support for Apple Pay, at least on the issuing side of the equation. Alas, this doesn't mean you'll be finding Apple Pay-compatible payment terminals at your local federal government agency, as this is actually about how the government pays for things instead. The federal government actually has their own credit cards to employees for official expenses (GSA SmartPay from the General Services Administration) as well as Direct Express debit cards given to those receiving Social Security and veterans benefits payments. And the government's working on making those cards Apple Pay compatible.

So all the parties involved are making this happen:

Apple, Visa, MasterCard, Comerica Bank and U.S. Bank are committed to working together to make Apple Pay, a tokenized, encrypted service, available for users of federal payment cards, including DirectExpress and GSA SmartPay cards.

As you can imagine, with the federal government involved this likely won't happen quickly or simply. Your author has used a GSA SmartPay card before to purchase fuel for a government vehicle and, let me tell you, it's a process (there's a code on the card that you have to enter at the pump, and it also demands the mileage of the vehicle that's associated with that card — yes, the card's issued to a vehicle and not a person). But it's a good sign to see even the federal government looking at an emerging technology like contactless payments and wanting to hop on the bandwagon.

Source: White House; Via: Bloomberg








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