CUPERTINO, Calif.—The U.S. government is backing mobile payments—specifically—Apple Pay.
Apple's CEO Tim Cook announced that Apple Pay will be accepted as a payment method for federal government services, starting in September.
Initially, Apple Pay will be adopted into the kiosks for national parks, allowing visitors to pay admission with their phones. Then, beginning in September, federal payment cards are expected to support Apple Pay, including debit cards where veteran benefits and Social Security payments are issued, explained Bill Hardekopf, CEO of LowCards.com, Birmingham, Ala.
Cook said over 2,000 financial institutions have signed on with Apple to bring the service to their customers/members.
"We're also working to make sure credit and procurement cards issued to government employees for their expenses can be used with Apple Pay, and we're working on initiatives with leading banks and networks to use this technology with benefits programs like social security and veteran’s pensions that serve citizens at both the state and federal level," said Cook at a recent cybersecurity summit.
Apple said it will be working closely with the U.S. government to maintain privacy and security standards during the transition. In particular, Apple wants to make sure the digitization of identification tools, like passports and driver's licenses, does not compromise the privacy of people using the new solution.
“If everything goes according to plan, Apple Pay will soon set itself up as much more than just a credit card replacement. Consumers could be more likely to adapt to mobile payments if their government is working with the payment provider, so this could mean big things for Apple down the road,” said Hardekopf.