Its a Bar code consolidator .
You buy tickets via apps for items such as cinema film shows, airline tickets and even coffee houses.These tickets/vouchers are downloaded as bar codes into the passbook app “virtual wallet”
You do need to download the vendor apps separately and create your account/payment profile in each.
These may differ for each vendor some might accept paypal some debit cards others only certain credit cards and even direct debit/wire transfers may be acceptable.Even possibly charges on your mobile phone bill -All up to the vendor /sellers requirements.
It am not sure if Apple are making their usual 30% commission on these services however probably not since you are buying directly.
To redeem your voucher/ticket you attend the venue and offer the bar code on your iPhone screen up for bar code scanning in exchange for the service purchased.
Its pretty simple really you are sent a PDF voucher to your phone and rather than printing off you just offer up that imaged bar code for scanning.
No need for the contact or security implication associated the alternative NFC (Near field communication) system being pursued on Android which is just a type of very short range Bluetooth transfer.
Does NFC have other uses well yes its transfers files/images but it uses existing protocols (nothing new).
You can stream these via photostream SMS or messages just as easily on your iPhone without any physical contact with another device.
With NFC you can also get apps that allow you to store virtual currency (Very limited amounts at the moment $50 /£20 typically from your bank) and spend this via NFC contact transfer.
NFC is a technology that has some potential however its far for secure in its current implementation and Apple appears to have deferred from implementing it at the moment.
Rightly or wrongly Apple continues to be a good friend of the Media and Creative industries baring illegal file sharing (Bluetooth file transfer protocols remain disabled in iOS) whilst android doesn't.
