Tag: near field communication

Apple could finally embrace NFC technology in the near future

Investment firm Morgan Stanley believes that Apple will finally embrace NFC technology through a platform called “iWallet.” This is not the first such prediction to be made concerning Apple and NFC, but past forecasts regarding the pairing have failed to live up to reality. Apple has avoided NFC largely because of its concerns regarding the technology’s security and capabilities, but this avoidance mostly involved Apple’s use of NFC in mobile payments.

NFC has come under fire in recent years due to technical problems and security issues

NFC currently forms the backbone of most mobile payments services throughout the world. The technology allows for digital information to be transmitted over short distances, making an ideal commerce tool. The technology does, however, have some security issues that have been exposed through high profile attacks on mobile services that make use of NFC. These security issues have made many consumers leery of mobile payments and has even lead some large companies, such as Google, to remove NFC support from some of their leading mobile initiatives.

Apple may be growing fonder of NFC technology

Apple’s wireless endeavors have largely focused on iBeacon, which debuted last year and represents a sort of combination of Wi-Fi and Bluetooth technology. Morgan Stanley predicts, however, that Apple is growing more confident in the abilities of NFC and the company could include the technology in future devices. As NFC sees more use, it is becoming more advanced and secure, making it more attractive to companies that have opted to take a cautious approach to the mobile payments space.

Apple would focus on security if it does choose to integrate NFC into future mobile devices

If Apple does embrace NFC technology, Morgan Stanley predicts that the company will focus on security. The company may choose to incorporate an NFC chip into future devices that works alongside a secure element that will store consumer financial information. The NFC chip would transmit this information when a payment is authorized by the device’s owner, using a fingerprint or other biometric information to authenticate the owner.

Apple appears to be making considerable steps toward smartphone based payments.

Patents, reports, and rumors are coming together to provide a continually increasing body of evident that suggests that the iPhone 6, which is expected to be released this fall, will include a mobile wallet to allow owners to be able to use their smartphones to pay for purchases.

This will make Apple a rather late entrant into the mobile payments market space.

Despite this fact, a mobile wallet in an i-device is likely to have a massive impact on the small but growing trend. Many people believe that this is the addition required to bring mobile payments into the mainstream. This may also help to encourage increased use of struggling services such as Isis and Google Wallet.

More evidence of a possible iPhone 6 mobile wallet was generated by Apple’s talks with Visa.

Reports have now been published that have indicated that Apple has entered into discussions with Visa as well as a number of other credit card companies regarding the creation of mobile payments partnerships.

If the electronics giant does go ahead with this technology, it would mean that users of its smartphones would be able to use their devices to be able to complete mobile transactions. Therefore, even when purchasing physical goods in brick and mortar retail stores, they will still be able to pay at the checkout counter using the device instead of a credit card.

At the same time a digital wallet would also give the upcoming iPhone’s users the opportunity to use that same type of transaction to pay for products that they purchase online and in apps. This would convert the smartphone into a direct connection to credit card companies for making payments. This could help consumers and retailers, alike, in being able to save money by avoiding the third party transaction processing fees that are paid in traditional credit card based purchases.

The main focus for Apple mobile wallets would be on security, as the company has reportedly added a secure hardware element to their upcoming devices, though it is unknown whether that will be based upon NFC technology or another option altogether.