Visa, Apple aim to simplify transactions with wireless iPhone payments

Posted:
in iPhone edited January 2014
This summer, Visa will make it possible for iPhone users to wave their device in front of a contactless payment terminal to make transactions, thanks to an Apple-certified hardware accessory.



The technology will be possible thanks to a protective iPhone case that will include a secure memory card that will hold Visa's contactless payment application, called Visa payWave. The application, which is compatible with the iPhone 3G and iPhone 3GS, can be password protected and includes advanced security technology to uniquely identify each contactless transaction.



The press release from Visa and the maker of the hardware, DeviceFidelity, was temporarily visible earlier this week on the MarketWatch website, before it was pulled. It revealed that Visa will begin market trials of the iPhone hardware, which has allegedly been certified by Apple, this summer.



"iPhone users will be able to make Visa mobile payments in retail stores, at fast food restaurants, in taxis, during sporting events (such as at baseball games), and also make purchases at vending machines that have contactless payment terminals," the press release read. "Thousands of merchants throughout the U.S. have already upgraded their payment terminals to allow consumers to make Visa mobile payments."



The new feature will not be limited solely to the iPhone -- the memory card can also be placed in "a majority of smartphones" that have a slot for memory expansion. Users insert the card into the memory slot, which "transforms" the handset into a Visa payment device. Similar technology has already been rolled out in Malaysia and Japan.



Late last year, a report suggested that Apple was testing similar Near Field Communication Technology in the form of Radio-Frequency Identification, or RFID, in its next-generation iPhone prototypes. The feature could allow Apple's handsets to offer swipe payments at mobile terminals without the need for an external case or memory card provided by Visa.



Apple's interest in RFID tags first surface in 2007, when a patent application described technology that could allow the wireless protocol to simplify Wi-Fi networking. The application suggested an AirPort Extreme base station could hold an RFID transceiver containing all of a network's configuration information, including authentication and encryption keys.
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Comments

  • Reply 1 of 42
    Quote:

    The new feature will not be limited solely to the iPhone -- the memory card can also be placed in "a majority of smartphones" that have a slot for memory expansion. Users insert the card into the memory slot, which "transforms" the handset into a Visa payment device. Similar technology has already been rolled out in Malaysia and Japan.



    Does this mean that the next gen iPhone will have some sort of memory slot, or is Apple embedding something in the iPhone specifically for Visa?
  • Reply 2 of 42
    akf2000akf2000 Posts: 223member
    oh ffs not AI as well - had the same article on TUAW, the comments ripped it to pieces due to the requirement for a case! THIS IS THE SAME THING AS GLUING A CARD TO YOUR FACE AND USING YOUR FACE.
  • Reply 3 of 42
    bspearsbspears Posts: 147member
    Very unApplelike to need the case. I bet this is built into the 4G iPhone.
  • Reply 4 of 42
    cvaldes1831cvaldes1831 Posts: 1,832member
    Quote:
    Originally Posted by Iphtashu Fitz View Post


    Does this mean that the next gen iPhone will have some sort of memory slot, or is Apple embedding something in the iPhone specifically for Visa?



    No, most likely it would be an RFID chip for NFC contactless payment. You wave the phone over a sensor.



    The Japanese have had this for about five years; they call it "Osaifu-keitai" (literally "wallet-phone"). They use it for transit passes, event tickets, airline tickets, debit, loyalty programs, etc.



    The phone hardware isn't a big deal. It's working out the back-end and agreeing on a system for the payment. In Japan, the dominant mobile operator (NTT DoCoMo) basically rolled out their concept and said, "here you go."
  • Reply 5 of 42
    cmf2cmf2 Posts: 1,427member
    Quote:
    Originally Posted by Iphtashu Fitz View Post


    Does this mean that the next gen iPhone will have some sort of memory slot, or is Apple embedding something in the iPhone specifically for Visa?



    No memory card for sure. I wouldn't put it past Apple to embed something. Current iPhones will use a special case though, that may be how it works for the new iPhone as well.



    Quote:

    The technology will be possible thanks to a protective iPhone case that will include a secure memory card that will hold Visa's contactless payment application, called Visa payWave. The application, which is compatible with the iPhone 3G and iPhone 3GS, can be password protected and includes advanced security technology to uniquely identify each contactless transaction.



  • Reply 6 of 42
    soskoksoskok Posts: 107member
    Quote:
    Originally Posted by Iphtashu Fitz View Post


    Does this mean that the next gen iPhone will have some sort of memory slot, or is Apple embedding something in the iPhone specifically for Visa?



    No hope for memory card with Apple. I also do not believe that the new iPhone will have the tech embedded. If it is a success and we start to use our phones as Japanese do, than 2011/12 iPhone might have the thing inside. At least its my bet.
  • Reply 7 of 42
    cwfrederickcwfrederick Posts: 171member
    Quote:
    Originally Posted by akf2000 View Post


    oh ffs not AI as well - had the same article on TUAW, the comments ripped it to pieces due to the requirement for a case! THIS IS THE SAME THING AS GLUING A CARD TO YOUR FACE AND USING YOUR FACE.



    ffs of course it requires a case. or maybe it will be included in an upcoming iPhone, and maybe apple will start a service where you send in your old iPhone and they magically incorporate it into your iPhone and sent it back for free! its amazing how many people post to the internet without taking 5 sec to think.
  • Reply 8 of 42
    oflifeoflife Posts: 120member
    What if I loan my iPhone? Apple are really locking people into their garden. Way way better to have an open system. a) Collect item(s) to purchase. b) Head to till. c) Biometric reading taken using local camera etc. d) After verification, payment made. No on person gadget required. With Apple's system, the only benefit is that the iPhone is used to verify the process, so it is assumed one's information is not held elsewhere? Too tired to go on, but me thinks Apple should stop the lockin model and instead create a more compelling solution, perhaps focus on the backend technology to ensure security for any networked biometrics. It is surprising how little Apple outsource their expertise to other companies.
  • Reply 9 of 42
    cwfrederickcwfrederick Posts: 171member
    Quote:
    Originally Posted by Oflife View Post


    What if I load my iPhone? Apple are really locking people into their garden. Way way better to have an open system. a) Collect item(s) to purchase. b) Head to till. c) Biometric reading taken using local camera etc. d) After verification, payment made. No on person gadget required. With Apple's system, the only benefit is that the iPhone is used to verify the process, so it is assumed one's information is not held elsewhere? Too tired to go on, but me thinks Apple should stop the lockin model and instead create a more compelling solution, perhaps focus on the backend technology to ensure security for any networked biometrics. It is surprising how little Apple outsource their expertise to other companies.



    you're totally right, apple should not include any additional technology in their products because a better technology is going to come eventually.
  • Reply 10 of 42
    awmawmawmawm Posts: 67member
    If the next generation iPhone required a case for this, it will be a complete failure. If it is embedded, success is likely.
  • Reply 11 of 42
    blah64blah64 Posts: 928member
    Quote:
    Originally Posted by cvaldes1831 View Post


    No, most likely it would be an RFID chip for NFC contactless payment. You wave the phone over a sensor.



    The Japanese have had this for about five years; they call it "Osaifu-keitai" (literally "wallet-phone"). They use it for transit passes, event tickets, airline tickets, debit, loyalty programs, etc.



    Because the Japanese don't mind having every aspect of their lives tracked and monitored.



    It seems there are many people here in the US that still don't "get" why that's not a good thing, but at least some moves are getting people to rethink whether this stuff is a good idea. Northern Arizona University is installing an RFID-based tracking system to monitor their students "to check class attendance". Does anyone think this is really necessary? And does anyone think it will stop with "class attendance"? Please don't tell me people are this naive!



    Full story: http://badgerherald.com/news/2010/05...ge_to_posi.php





    Quote:
    Originally Posted by cmf2 View Post


    No memory card for sure. I wouldn't put it past Apple to embed something.



    Any iGadget with this stuff embedded (without a way to permanently disable it), will be on my Do Not Buy list forever.



    Please guys, consider how this is a slow step-by-step toward an Orwellian world. Just like the lobster that you drop into a pot of water and slowly turn it up until it's cooked. The lobster doesn't even realize what's happening until it's too late. Most people don't even notice or care right now, but we're not that far from a tipping point of not being able to live without having your whereabouts, spending habits and just about everything else tracked and monitored - in real time. A lot of this is, of course, already happening.



    Yes, there's GPS on your iPhone, but (as far as we know) you can (mostly) disable it.
  • Reply 12 of 42
    cmf2cmf2 Posts: 1,427member
    Quote:
    Originally Posted by Blah64 View Post


    Any iGadget with this stuff embedded (without a way to permanently disable it), will be on my Do Not Buy list forever.



    Please guys, consider how this is a slow step-by-step toward an Orwellian world. Just like the lobster that you drop into a pot of water and slowly turn it up until it's cooked. The lobster doesn't even realize what's happening until it's too late. Most people don't even notice or care right now, but we're not that far from a tipping point of not being able to live without having your whereabouts, spending habits and just about everything else tracked and monitored - in real time. A lot of this is, of course, already happening.



    Yes, there's GPS on your iPhone, but (as far as we know) you can (mostly) disable it.



    So what you are saying is that with this technology they can track your whereabouts whenever you make a transaction, just like they already can with a credit card? Obviously there would also be a way to turn it off as well.
  • Reply 13 of 42
    paulmjohnsonpaulmjohnson Posts: 1,380member
    Quote:
    Originally Posted by awmawm View Post


    If the next generation iPhone required a case for this, it will be a complete failure. If it is embedded, success is likely.



    I actually think the thing required for success is standardization at the cash register. I've got the Mastercard version of this built into my debit card, and where you see their contactless pads it words great, but where you see the Visa ones it doesn't work at all (obviously).



    For something like this to work, the credit card companies (and banks) need to come together to define a standard that they will all work to.
  • Reply 14 of 42
    benicebenice Posts: 382member
    Its going to be pretty handy when this is in place. I wouldn't use a case for it, but having it somehow inside the phone will be nice, because I'm sick of having carrying $10 of coins to ride the train which won't take notes and cards.



    The sooner they do this the better.
  • Reply 15 of 42
    str1f3str1f3 Posts: 573member
    Quote:
    Originally Posted by Blah64 View Post


    Because the Japanese don't mind having every aspect of their lives tracked and monitored.



    It seems there are many people here in the US that still don't "get" why that's not a good thing, but at least some moves are getting people to rethink whether this stuff is a good idea. Northern Arizona University is installing an RFID-based tracking system to monitor their students "to check class attendance". Does anyone think this is really necessary? And does anyone think it will stop with "class attendance"? Please don't tell me people are this naive!



    Full story: http://badgerherald.com/news/2010/05...ge_to_posi.php









    Any iGadget with this stuff embedded (without a way to permanently disable it), will be on my Do Not Buy list forever.



    Please guys, consider how this is a slow step-by-step toward an Orwellian world. Just like the lobster that you drop into a pot of water and slowly turn it up until it's cooked. The lobster doesn't even realize what's happening until it's too late. Most people don't even notice or care right now, but we're not that far from a tipping point of not being able to live without having your whereabouts, spending habits and just about everything else tracked and monitored - in real time. A lot of this is, of course, already happening.



    Yes, there's GPS on your iPhone, but (as far as we know) you can (mostly) disable it.



    I think it has its pros and cons. It shouldn't be the only form of payment though I suspect that eventually it will be. My main concern is who has access to my information. Your example case of NAU is way out of bounds. Unfortunately, between Facebook and Google, many if not most have already given up their privacy. That Orwellian may already exist. We still don't really know the extent to which iAds will eventually go in analyzing user data. The US gov't already has access to all your telephone calls and purchases.
  • Reply 16 of 42
    macinthe408macinthe408 Posts: 1,050member
    Yea, this is going to be hot. Good job Apple for not adorning iPhones with expansion slots.



  • Reply 17 of 42
    benicebenice Posts: 382member
    Quote:
    Originally Posted by macinthe408 View Post


    Yea, this is going to be hot. Good job Apple for not adorning iPhones with expansion slots.







    Super hot. I'm going straight to the Apple store to get one!
  • Reply 18 of 42
    asciiascii Posts: 5,941member
    As long as they're modifying the point of sale terminals, why not make them accept a thumbprint + PIN, and do away with cards/phones altogether.
  • Reply 19 of 42
    onhkaonhka Posts: 1,025member
    Quote:
    Originally Posted by AppleInsider View Post


    This summer, Visa will make it possible for iPhone users to wave their device in front of a contactless payment terminal to make transactions, thanks to an Apple-certified hardware accessory.



    I showed this article to my wife as I do everything that just helps justify even more my having an iPhone, and hopefully getting the iPad as soon at it becomes available in Canada.



    Without a blink of an eye, she said, "Amazing. But if you give me your VISA card, I can tell you how you can get your 'new' iPad even faster."



    Now that was an offer I just couldn't refuse. And quickly as I handed her my card, she took a pair of scissors, cut it in two and said, "Don't use it."
  • Reply 20 of 42
    dreamrajdreamraj Posts: 83member
    Quote:
    Originally Posted by macinthe408 View Post


    Yea, this is going to be hot. Good job Apple for not adorning iPhones with expansion slots.







    Quote:
    Originally Posted by benice View Post


    Super hot. I'm going straight to the Apple store to get one!





    Super-duper hot!! I'm already at the Apple store for this!!



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