When it’s time to pay instead of swiping or inserting tap your phone on the payment terminal. Before you tap you must authenticate the card by using TouchID, FaceID, or type in your password. It’s important to note that a credit card number is not saved on Apple’s servers, locally on your device, or the merchant payment system. Instead, when you tap your phone the near-field communication or NFC (hardware found in your iPhone or Apple Watch) sends an encrypted unique identifier to the payment terminal which is then sent to your financial institution to decrypt and charge your account. By using Apple Pay you save time having all your cards in the same place and more convenient than digging through your wallet to find the right credit card. Apple Pay is also a safer form of payment because instead of tossing credit card numbers around there is a unique code making it less of a chance of getting your credit card number stolen.