Apple’s announcement Tuesday that it would be entering the payments industry with its Apple Pay technology has CEOs from Boston-area payments startups excited about one thing: the impending death of the credit card as we know it.
“The 16-digit PAN (primary account number) is dead,” said Shaunt Sarkissian, CEO of mobile payments startup Cortex MCP, referring to credit card numbers. Apple’s technology uses NFC — near field communication — which utilizes electromagnetic radio fields to transmit data from a device to another device. In this case, it’s the upcoming iPhone 6 with the virtual payment technology that’s set to debut next month.
Sarkissian said Apple had “injected life” into NFC technology. With Apple’s technology, users can scan their credit card into the phone and then pass their phone across a device where credit cards are typically swiped.
Another local payments company, Boston-based LevelUp, said in a blog post that its new scanners would use NFC technology and that its technology would be integrated into Apple’s Passbook, which is an app within the iPhone that allows users to store things such as airline tickets or coupons.…