Here is a thought. The Apple Pay transaction is simply a PayPass, PayWave or ExpressPay transaction. MasterCard's, Visa's and American Express' contactless (read mobile or NFC) solutions are based on EMV and in particular the EMV Contactless specifications, EMV security architecture and use the same EMV commands and data elements.

Apple implemented Apple Pay, at the POS, exactly the same way SoftCard did. Yes they tokenized the PAN by asking the Issuer for a DAN, SoftCard called it an alias PAN. In SoftCard the issuer had a TSM "Trusted Service Manager" it used to create the digital credentials (EMV stuff). With Apple Pay the issuer asks the Payment Network to provide the DAN and digital credentials (EMV stuff). SoftCard operates a TSM that then takes those credentials and loads them into the secure element in the phone. Apple has something, not sure i remember whatbthey call it, they use to load the credentials into the secure element.

What has Apple done special? Yes they put their name and resources behind NFC and EMV and got the banks to agree to pay 0.15%.

I am pleased Apple joined the EMV over NFC move. I am glad they are helping us migrate to a world where our digital credentials (EMV stuff) are stored in our phone securely inside a secure element.