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Are you sure? I could have sworn that the terms were used synonymously by Apple.

I think they are synonymous, however it is very likely that the TouchID and the NFC processor both have their own secure elements that are inaccessible to the application processor.
 
Hmm, I didn't realize there may be more than one secure element. I assumed there would be one secure element that held both the fingerprint and payment data.
 
You have to have the watch to use it? That's weird. That's expensive. So what do you do, do have to have the watch on and that's it? It will pick up the signal?

iPhone 5, 5s and 5c will work through the watch. 6 and 6+ will work on their own. Either get the watch or upgrade to the latest model.
 
And of course the 6/6+ and on will also work with the watch, and it appears Apple Pay may work on the watch even without a phone connected to it.
 
No, they are separate. The Secure Element is a chip compliant to the NFC standard's requirements that can store credentials and run Java Card applications (such as payment apps). You can find a little information about the components involved in Apple Pay starting on page 24 in this document:

http://images.apple.com/privacy/docs/iOS_Security_Guide_Oct_2014.pdf

Interesting, thanks for the link.

So really the only way to use Apple Pay with a 5/5S would be with the Apple Watch and only then through POS terminals? Or do you think there will be a way for the watch to send payments online if connected to the phone?
 
So really the only way to use Apple Pay with a 5/5S would be with the Apple Watch and only then through POS terminals? Or do you think there will be a way for the watch to send payments online if connected to the phone?
Apple states on the product page that the watch can only be used for in-store purchases.
 
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