[urbanjunkie]

And that's why you need a separate terminal to enter your PIN (at least here in the UK, although I'm fairly sure that also applied in Europe), and the PIN number is never transmitted to the actual POS application, just a token indicating success or failure.

[disappearance]

Right, but in this instance the 'terminal' to confirm your pin and POS application are one and the same, and ultimately just replaceable software on an iOS device.