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Apple also announced its entry into the payments market with "Apple Pay." They're trying to replace traditional credit card payments with holding an iPhone up to a scanner instead. It uses NFC and the iPhone's TouchID fingerprint scanner. Users can take a picture of their credit cards, and Apple Pay will gather payment information, encrypt it, and store it. (Apple won't have any of the information about users' credit cards or their purchases, and users will be able to disable the payment option through Find My iPhone if they lose the device.) Apple Pay will work with Visa, Mastercard, and American Express cards to start. 220,000 stores that support contactless payment will accept Apple Pay, and many apps are building direct shopping support for it. It will launch in October as an update for iOS 8, and work only on the new phones.
Apple capped off the conference with the announcement of the long-anticipated "Apple Watch." Their approach to UI is different from most smartwatch makers: Apple has preserved the dial often found on the side of analog watches, using it as a button and an input wheel. This "digital crown" enables features like zoom without obscuring the small screen with fingers. The screen is touch-sensitive and pressure sensitive, so software can respond to a light tap differently than a hard tap. The watch runs on a new, custom-designed chip called the S1, it has sensors to detect your pulse, and it has a microphone to receive and respond to voice commands. It's powered by a connector that has no exposed contacts — it magnetically seals to watch and charges inductively. The Apple Watch requires an iPhone of the following models to work: 6, 6Plus, 5s, 5c, 5. It will be available in early 2015, and will cost $349 for a base model.