Tag: nfc technology

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.

Mobile payments continue to be a complex issue

Mobile commerce has become quite popular, but not everyone is sold on the idea of paying for things with their mobile device. The idea is quite simple: Mobile applications act as facilitators of mobile transactions, allowing people to make purchases while shopping online from their smartphones and tablets. Under the surface, mobile commerce is anything but simple, thanks to changing commerce standards and the ever present threat of exploitation coming from malicious groups that want to get their hands on consumer financial information.

Because mobile commerce is not as straightforward as it seems, many people are wondering whether or not mobile payments are actually worthwhile or little more than a passing novelty. Much of this uncertainty is actually tied up in the technology that is supporting mobile payments. NFC technology and cloud computing are the two structures that currently support the mobile payments industry, and this industry is currently in the midst of a format war. NFC-based solutions are vying for the support of consumers and businesses alike alongside cloud-based services.

In the format war, the cloud may have the upper hand. NFC-based solutions have the drawback of only being available on NFC-enabled mobile devices. This means that mobile wallets and other mobile commerce services that rely on NFC can only be used by smartphones and tablets that have an NFC chip embedded within them. Cloud-based services have no such limitations and it is for this reason the cloud is becoming more prominent when it comes to mobile payments.

Beyond the format war, other issue exist that continue to make mobile commerce a complicated matter. Large companies are beginning to muscle their way into the mobile scene, hoping to take advantage of the growing popularity of mobile payments. Companies like AT&T, Verizon Wireless, Google, and others have launched mobile wallets into the market. The problem isn’t that large companies are entering into the mobile commerce fray, of course, it is that these companies are rushing into the battle with little concern for anything else but exposure.

When Google first launched its ambitious Wallet service, the mobile wallet quickly fell prey to serious security issues that made the platform unpopular with many people. The platform had been using NFC technology at the time, and many people began to consider that technology faulty from a security perspective. Google has since moved away from NFC and has resolved many of the security issues that it faced with the initial launch of Wallet, but the damage the company’s haste caused has set its mobile commerce interests back considerably.

Another issue that mobile payments are facing has to do with the long wait people must endure before mobile commerce services become available to them. Many of the services that are most popular today were only released a few short months ago, while those that are highly anticipated may not be released for several years yet. Large organizations are beginning to take their time developing comprehensive platforms, but small companies are pumping out nw platforms at a rapid pace, saturating the market but doing little to overcome the actual problems that face mobile commerce currently.

Mobile commerce is not something that can be solved easily. There is no singular correct approach to engaging mobile consumers or enticing them to pay for products with a smartphone or tablet. As with most things, those seeking success in this field may have to find a balance between the problems they can and cannot solve.