iPhone 6 owners set to be able to use their handset as a credit card from October 20th

 It is the technology that really could change the way we live (and shop).Apple Pay aims to replace cards with an iPhone 6, allowing shoppers to simply prove their identity with a fingerprint then tap to pay.
Now, it has been claimed that owners will finally be able to throw away their wallets on October 20th.
According to Bank Innovation, this is when apple will release iOS 8.1, which contains the feature.

'Based on multiple sources close to Apple, Bank Innovation has learned that iOS 8.1 will include Apple Pay, and the current expected timetable for the public release is schedule for October 20,' the site said.

Sources who spoke to Bank Innovation indicated that the public release of iOS 8.1 will be in sometime in October and may have improvements for other Apple services.

It is believed the feature could be launched at an event were new iPads and Mac software will also be released.

'We expect that the iOS 8.1 release will be timed to the still-unconfirmed October event held by Apple to announce their new iPad devices, as other websites have previously reported and Bank Innovation has heard rumors about, as well.'

Apple Pay is designed to let iPhone 6 and 6 Plus owners use their smartphones to pay for purchases at shops as well as online via apps.

The service will also be available on Apple Watch.

The mobile system works by holding phone up to a generic card reader and pressing a finger on the TouchID button.

The NFC chip is fitted across the top of the phone.

All details are encrypted and the system stores payment information securely.

It uses the Passbook app and cards that are already on file with iTunes can be saved to it.

Users can also take a picture of their own credit card and add it to the account. This is verified by the card’s bank before being accepted.

If an iPhone is lost, users can suspend all payments via the Find my iPhone service. This won’t cancel the cards, either, because the card details themselves are not stored on that device.

'Apple doesn't know what you bought, where you bought it, and how much you bought it for,’ said Apple's senior vice president of internet software and services Eddy Cue.

It will be launched in the US in October, and Apple said it is 'working hard' on bringing it to the UK, although a date has yet to be announced.

The Cupertinpo-based firm says it's easier and more secure than using a credit or debit card.

However, some experts have raised concerns over the system's security.

One of the major security concerns is in the way Apple will let people add a different credit card to their phone, so it can be used instead as the one the company has on file.
To add a card, a user will take a picture of it with their iPhone and send it to an Apple data centre.

There it will be verified it with their bank before it gets added to the user's Passbook.

However, it is unclear how the image is stored securely on the phone and how it is transmitted to prevent a criminal from intercepting it public Wi-Fi.

Cue said credit card information will be stored on the phone via a secure chip and payments will use a one-time security code.

The Find My iPhone service can erase the data if the phone gets lost or stolen - cancelling a card will not be necessary.

The service will be able to store Visa, MasterCard and American Express credit card information.

'A cashier doesn't see your name, credit card number or security code,' when you pay with Apple Pay, Cue said. He also said Apple won't track people's financial data.

'Apple doesn't know what you bought, where you bought it or how much you paid,' he said. 'That transaction is between you, your merchant and your bank.'
One security concern is that there is at least one new participant in the payment transaction which creates another point of attack– the handset manufacturer and network operator,' Richard Moulds, vice president of strategy at Thales e-Security told MailOnline.

'In the past the only participants were the merchant, the merchant’s bank and you own bank.

'Apple is stating that it will not know the details of individual transactions which is very important but there is clearly the risk of attacks on the phone itself.

'No security measure is perfect and attackers around the world will now make cracking Apple Pay their number one challenge.'
Apple said shops like Macy's and Bloomingdales, drugstores including Walgreen's and Duane Reade, and other stores including McDonald's, Staples, Subway and Whole Foods are participating in Apple Pay.

But some of the largest retailers are not participating. Wal-Mart said it has no plans to participate. Amazon.com did not respond to a request for comment. And Target said it is currently participating only via its app.