Apple's mobile payment system Apple Pay has been hit by a wave of fraudulent transactions using stolen credit card data from a spate of breaches at retailers, the Wall Street Journal reported, citing people familiar with the matter.
The transactions stemmed from breaches at retail giants including Home Depot and Target, the Journal reported yesterday.
The majority of unauthorised purchases have been for big-ticket items bought with smartphones at Apple's own stores, the Journal said.
Apple could not be reached immediately for comment.
Apple Pay was unveiled last October and saw more than a million credit cards registered over the first 72 hours. Within the first week, it was already toting up more transactions than all other "contact-less" payment methods combined, CEO Tim Cook has said, citing Visa and MasterCard data.
However, the payment solution has previously seen a backlash, as CVS and Rite Aid blocked the iPhone maker's mobile payments service about a week after its launch, saying there were plenty of other retailers around the world to sign up.
CVS and Rite Aid opted out of Apple Pay in favour of a rival system that roughly 50 chains, including Wal-Mart and Best Buy, have been developing for in-house use.
Payment services, through which a user pays by holding a smartphone close to a specially designed terminal, have failed to catch on in the US despite the backing of Google and other influential players.
In unveiling Apple Pay, the iPhone maker hopes to lock in more customers for its mobile devices by enhancing their overall utility. Industry experts say it stands a chance of becoming the first widely used payments feature on smartphones.
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