Apple on Tuesday unveiled new iPhone tools that will rock theworld of payments and possibly, multiple sources told CUTimes, end the tepid adoption that so far has plagued mobilepayment uptake.

The new tool is Apple Pay, powered by near field communication. Apple said at its product introduction event that Apple Paywill allow for much more secure transactions than are currentlypossible with plastic credit cards.

“This whole process is based on this little piece of plastic,whether it's a credit or debit card,” Apple CEO Tim Cook said onstage. “We're totally reliant on the exposed numbers, and theoutdated and vulnerable magnetic interface, which by the way isfive decades old, and the security codes which all of us knowaren't so secure.”

Apple instead is debuting a system that shares no cardinformation as such with the merchant. The consumer usingApple Pay pays with it, using a credit or debit card stored init.

“Apple doesn't know what you bought, where you bought it or howmuch you paid for it,” Eddy Cue, an Apple senior vice presidentsaid. “The transaction is between you, the merchant and your bank.The cashier doesn't see your name, credit card number or securitycode.”

Apple Pay will launch in October and, apparently, will run onlyon the new iPhone 6 and the larger iPhone 6 Plus (earlier iPhoneslack NFC, which is integral to Apple's transaction processing). Bigbanks such as Bank of America and Citi, credit card issuersAmerican Express, Visa and Mastercard are on board … and, also theVienna, Va.-based Navy Federal Credit Union.

Apple Pay, at launch, will work at some 220,000 retail locationspresently able to accept contactless payments. That includesBloomingdales, Whole Foods, Walgreens, Subway and McDonalds.

In a prepared statement, a Navy Federal spokesperson explainedwhy the $60 billion institution determined to get involved in ApplePay.

“Navy Federal Credit Union is proud to be one of the firstfinancial institutions to provide Apple Pay later this fall. Withit, we'll be able to deliver on the promise of easy and securemobile payments, and add a layer of convenience and security tousing Navy Federal credit and debit cards. By combining Apple'shistory of innovation with Navy Federal's unique militarymembership, Apple Pay has the ability to make mobile payments moreaccessible for military families who rely on mobile technology intheir daily lives.”

Randy Hopper, Navy Federal vice president, credit cards andbusiness optimization, added:

“Our members live fast-paced and mobile lives. And, they haveenthusiastically adopted our mobile banking solutions. Now, withApple Pay, they'll be able to save time when shopping while havinga safe and easy experience.”

Acknowledgement among payments experts that, so far, mobilepayments have not been widely adopted is broad. However, they alsoindicated that just maybe, Apple's entry changes the game.

Because of Apple's considerable marketplace clout, TeresaEpperson, managing director in the Financial Services Practice atconsulting firm AlixPartners, said, “This could get everybody tosit up and take notice.”

Epperson elaborated that, per her firm's research, there alreadyis a groundswell of would-be mobile payments users, especially inthe under-35 demographic. The barrier has been anemic adoption ofmobile payments technology at retail but now that may change.

Chris Gardner, a founder of mobile payments innovator Paydiant(which powers CUWallet, and MCX, among others), said “This is the last of the big shoes todrop. What Apple has done is disruptive.”

“Do I think this changes everything? No,” he said. “But Apple'sentry will make a difference in mobile payments.”

At CU Wallet, the credit union-owned mobile payments initiative,founder Paul Fiore said, “I see this as all good news. This will be theimpetus to involve merchants. If Apple makes the ability to domobile payments happen faster, it helps CU Wallet.”

As for consumer readiness to use a mobile wallet – about whichsome have raised doubts – the latest AlixPartners study indicatedthat many already are using it. According to that study, 63% of18-to 25-year-olds and 56% of 26- to 35-year-olds report making arecent mobile money-related transaction.

AlixPartners also found that 40% of smartphone/tablet ownersbetween 35 and 44, and 27% of 45 to 54 year-olds, reportedconducting a mobile money-related transaction in the previousmonth.

For the purposes of its research, AlixPartners, Epperson said,defined mobile payment broadly. It includes using mobile appssuch as HotelTonight, buying a coffee with the Starbucks app, doingP2P with PayPal's mobile app and much more. The common thread,Epperson said, is that all such transactions involve money movementand, she stressed, already a lot of money is moving because ofmobile phone transactions.

Her point: Just maybe the time is right for mobile payments and,what is beyond question, is that entry of Apple into the mixchanges the landscape and gives the true wallet believers amplereason to be optimistic.