Tag: iWallet

NFC may play a role in Apple’s future with mobile payments

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

nfc mobile paymentsApple’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.

Mobile wallets will be available in one in every five smartphones

By the year 2018, there is going to be a considerable rise in the capabilities for these payments apps.

According to a new forecast that has now been published, by the year 2018, one fifth of all smartphones will have mobile wallet functionality, and one third of all of those payments apps will involve contactless capabilities such as NFC technology.

This report has indicated that there will be a considerable growth in the potential for these apps.

The study and report were created by Juniper Research. That firm determined that there will be two separate mobile wallet models that will define themselves between now and the close of 2018. Within the emerging markets, it will be the Store Value Accounts (SVAs) that will continue to take off. Those forms of app are catering to the massive number of unbanked individuals in Latin America, developing Asia, and sub-Saharan Africa by providing them with financial access for the first time.

In the Western world, the mobile wallet model that will become common will be different.

That model will likely be based on contactless technology such as near field communication (NFC). These launches are expected to occur throughout North America and Western Europe. That latter form appears to be facing the greatest level of challenge when compared to emerging markets, where these apps are taking off more quickly. For instance, Alipay, in China, has already managed to register 100 million users.Mobile Wallet

The so-called iWallet, Apple’s contribution to this market space, is expected to arrive at any time. This could be a defining addition to mobile payments as it could either represent the point from which these smartphone wallets start to take off in the West, or it could reveal that these apps really will be facing some massive struggles in being able to take off.

It is believed that the iWallet will be based on HCE (Host Card Emulation) NFC services. The use of HCE could prove to be a considerable threat to the role of mobile operators in the contactless payments market. It likely won’t be very long before a much better understanding of the direction of the mobile wallet will be formed.