When Apple Pay launched last September, Goldenwest recognized it needed to stay competitive in its market and wanted to ensure it offered Apple Pay as soon as it could. The credit union began working with Apple, Visa and Jack Henry & Associates, which supplies Goldenwest with multiple products including its Episys core platform, JHA Payment Processing Solutions (to manage card processing and loyalty programs) and iPay Bill Pay solutions.

Before launching, Goldenwest trained its staff on the new payment option so representatives could explain it to members. On the day the credit union went live Jan. 20, Apple required that enough staff be on hand to tokenize the payment scheme.

In a conventional card-swipe scenario, all the card data, such as the number, CVV, expiration date, billing address, and PIN move with the transaction. With Apple Pay, a token replaces the actual plastic card. Apple Pay users wirelessly pay for goods by approaching the payment terminal that supports NFC connectivity, at which point the default credit card appears on the screen. On the iPhone 6, a touch on the fingerprint sensor approves the transaction, while on the Apple Watch, a tap on the button next to the Digital Crown initiates the payment.

The actual debit or credit card numbers are not stored on the device or on Apple servers. In its place, a unique Device Account Number, which is Apple-ease for token, is assigned, encrypted and safely held on the Apple device. Each transaction receives a one-time unique number with the Device Account Number and rather than a security code from the back of the card; Apple Pay creates a dynamic security code to authenticate each transaction.

Hilliard described adding Apple Pay as a double win for the credit union because it improves transaction dollars and heightens security for member cards.

“It is the easiest way to avoid breaches, because when you transmit the information to the merchant they only get a token, you are not transmitting any information. So if that merchant were to be breached, there is no exposure of customer information,” she said.

Goldenwest is not stopping at Apple Pay, either. The next step is waiting to see who will come up with a payment mechanism to work with Android phones. Two Droid payment systems appear close to reality.

Samsung's made a strategic move with the recent announcement that it had acquired LoopPay, a mobile-payments technology startup. The deal potentially boosts Samsung's capacity to allow its customers to pay for goods and services with their smartphone.

Then there is Google, which this week announced it acquired the intellectual property, mobile wallet technologies, patents and patent applications related to mobile payments from Softcard. It also is working with AT&T Mobility, T-Mobile USA and Verizon Wireless to provide Android users with the benefits of tap and pay technology.

Goldenwest, which has 100,000 members and 26 branches statewide, including the USU Credit Union division in northern Utah, expects to be ready for any new payment schemes.

“We have an obligation to our members to make sure we are staying up on the latest technologies to make things easier, convenient and safe,” Hilliard said.