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Banks approve the information Apple gives them, then sends back the encrypted information as well as a key for future purchases

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The bad thing about Apple pay is that it is easier to get into debt and lose a lot of money.

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Your information such as card detail are stored on Apple's servers.

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Once on the phone, use fingerprint sensor to verify purchases

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Enter your card details on your phone so you can use the card to buy things with the phone or watch.

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Apple Pay is an easier way of paying online and in retail stores.