Apple finalizing wireless e-wallet for iPhone 5, iPad 2 - report
A new report claims Apple will add near-field communication technology to this year's anticipated iPad 2 and iPhone 5, giving users the ability to have their device serve as an electronic wallet for quick wireless transactions.
Richard Doherty, director of the consulting firm Envisioneering Group, told Bloomberg that the next-generation iPad and iPhone will both include near-field communication technology. In a report on Tuesday, Doherty cited engineers who he claimed are working on hardware for the project.
"Apple's service may be able to tap into user information already on file, including credit-card numbers, iTunes gift-card balance and bank data..." the report said, citing a financial industry adviser. It was speculated that the inclusion of an NFC chip could compete with services from Visa, MasterCard, eBay and PayPal.
A NFC chip already appears in the Google Nexus S, which debuted in the U.S. on Dec. 16. The chip allows for short-range wireless data transmissions for a variety of potential activities, including an "e-wallet."
Reports dating back to late 2009 have claimed that Apple is working to add radio-frequency identification, or RFID, to the iPhone. And last year, the company hired an expert on NFC, while another report claimed the company was already testing NFC-enabled iPhone prototypes.
Doherty reportedly said that Apple could start its own mobile payment service for use at retail stores as early as mid-2011, when the iPhone 5 is expected to launch. For such a service, iTunes could be revamped to include traditional credit card features like loyalty credits and points earned through transactions.
"Using the service, customers could walk into a store or restaurant and make payments straight from an iPad or iPhone," the report said. "They could also receive loyalty rewards and credits for purchases, such as when referring a friend, Doherty said."
He claimed that Apple has already built a prototype payment terminal intended for small businesses "such as hairdressers and mom-and-pop stores." He added that Apple may "heavily" subsidize the hardware, or even give it away to retailers, to encourage rapid adoption of NFC technology and boost sales of NFC-equipped iPhones and iPads.
Richard Doherty, director of the consulting firm Envisioneering Group, told Bloomberg that the next-generation iPad and iPhone will both include near-field communication technology. In a report on Tuesday, Doherty cited engineers who he claimed are working on hardware for the project.
"Apple's service may be able to tap into user information already on file, including credit-card numbers, iTunes gift-card balance and bank data..." the report said, citing a financial industry adviser. It was speculated that the inclusion of an NFC chip could compete with services from Visa, MasterCard, eBay and PayPal.
A NFC chip already appears in the Google Nexus S, which debuted in the U.S. on Dec. 16. The chip allows for short-range wireless data transmissions for a variety of potential activities, including an "e-wallet."
Reports dating back to late 2009 have claimed that Apple is working to add radio-frequency identification, or RFID, to the iPhone. And last year, the company hired an expert on NFC, while another report claimed the company was already testing NFC-enabled iPhone prototypes.
Doherty reportedly said that Apple could start its own mobile payment service for use at retail stores as early as mid-2011, when the iPhone 5 is expected to launch. For such a service, iTunes could be revamped to include traditional credit card features like loyalty credits and points earned through transactions.
"Using the service, customers could walk into a store or restaurant and make payments straight from an iPad or iPhone," the report said. "They could also receive loyalty rewards and credits for purchases, such as when referring a friend, Doherty said."
He claimed that Apple has already built a prototype payment terminal intended for small businesses "such as hairdressers and mom-and-pop stores." He added that Apple may "heavily" subsidize the hardware, or even give it away to retailers, to encourage rapid adoption of NFC technology and boost sales of NFC-equipped iPhones and iPads.
Comments
He claimed that Apple has already built a prototype payment terminal intended for small businesses "such as hairdressers and mom-and-pop stores." He added that Apple may "heavily" subsidize the hardware, or even give it away to retailers, to encourage rapid adoption of NFC technology and boost sales of NFC-equipped iPhones and iPads.
Yaaayayyy Apple goes up against banks!! If anyone can make this work easily for the majority of small shops, it'll be Apple.
Yaaayayyy Apple goes up against banks!! If anyone can make this work easily for the majority of small shops, it'll be Apple.
Surely this will simply be on behalf of the banks. However with $60B I guess Apple could become a bank
I also use CardStar to store my reward/club card numbers for various retail shops. It’s handy in the sense that I don’t have to carry a stack of 20 cards with me and that I’m very likely to have my phone on my person at all times when leaving the house. It does, however, seem to take just as much time if not more to launch the app and get the number ready. NFC would surely make this a little easier as it wouldn’t have to be scanned or typed in manually.
I don’t mind carrying my credit/debit cards as I don’t have many of those. How long before credit/debit NFC scanners are commonplace to the point that carrying a physical card seems redundant? Perhaps I’m just being paranoid about this technology. What other uses does NFC have to offer?
Don't see this on the iPad 2. iPhone 5 will probably get this first. Mobile payments makes more sense for smartphones.
I was thinking the same thing. But it's nice to have it in there and it doesn't really cost anything, so why not bundle it. Perhaps Apple can see uses for having it in an iPad that we can't. And the chip, once in there, can used for other things too.
Don't see this on the iPad 2. iPhone 5 will probably get this first. Mobile payments makes more sense for smartphones.
I was thinking the same thing. But it's nice to have it in there and it doesn't really cost anything, so why not bundle it. Perhaps Apple can see uses for having it in an iPad that we can't. And the chip, once in there, can used for other things too.
The potential for the iPad 2 is not as an electronic wallet -- rather as the other side of the transaction:
I can very much see this as happening -- and it can be incremental instead of disruptive.
For those who currently have POST (Point Of Sale Terminals -- to differentiate from POS), for cc transactions -- they need not be modified, updated or replaced.
An device can be added to handle the NFC transactions -- that device can be something as inexpensive as (in Apple's case) an iPod Touch, iPhone or an iPad.
The iPad offers a great potential because it can evolve, through hardware and software additions, to handle all traditional POST transactions:
-- cc swiping and processing (through existing systems)
-- scanner data entry
-- keypad/touchpad data capture
-- cash register/cash drawer functions
-- signature capture
-- receipt printing
-- NFC transactions - electronic payment bump and receipt exchange
Apple could subsidize the POST setup and cost by offering a monthly tiered fee system based on transaction volume (similar to, but less than cc systems).
iPay anyone?
The above post was made to another forum:
http://techcrunch.com/2011/01/25/iphone-5-nfc/
I don’t mind carrying my credit/debit cards as I don’t have many of those. How long before credit/debit NFC scanners are commonplace to the point that carrying a physical card seems redundant? Perhaps I’m just being paranoid about this technology. What other uses does NFC have to offer?
Actually, an electronic wallet with NFC should be more secure than credit cards:
-- can't be used if stolen lost
-- never leaves your sight
-- no visible receipts
-- max $ limit per transaction
NFC could be used as a quick trigger to launch an app and/or a more robust communication connection (BT, WiFi)
Or, it could unlock your front door or start your car.
The potential for the iPad 2 is not as an electronic wallet -- rather as rthe other side of the transaction:
True. iPhone pays, iPad receives. Many people modified iPad to be cash register already. With NFC, they just communicate directly without a need of a scanner.
I think it'll work together pretty well.
Surely this will simply be on behalf of the banks. However with $60B I guess Apple could become a bank
What you say is true.
At first I see merchants [iwth existing cc systems] installing a NFC POST system along side the existing system -- to handle high-volume, low-dollar-amount transactions as efficiently as possible.
If the NFC POST is robust enough (an iPad 2), it can assume the cc processing using the existing bank/processor infrastructure.
At some point it would subsume the entire POST transaction within the Apple iPay infrastructure.
This payment system still goes through credit cards. If anyone can do NFC-Payments right in Europe and the Americas it's probably Apple. Going out on a night with just your phone? Watch you don't drop it.
See above.
As to losing your eWallet -- that's one of the advantages of a well-designed system. You provide, in advance, for the loss. The iPay merchant provides you access to to the online system to validate your authenticity.
So, you have more access to credit than with a cc -- as there is no provision for cc transactions w/o a cc.
Actually, an electronic wallet with NFC should be more secure than credit cards
I don't see two as mutually exclusive. Visa and Mastercard creditcards can be (and in a lot of cases are) NFC enabled.
I suspect they will be accepted in a lot more places as well
I don?t mind carrying my credit/debit cards as I don?t have many of those. How long before credit/debit NFC scanners are commonplace to the point that carrying a physical card seems redundant? Perhaps I?m just being paranoid about this technology. What other uses does NFC have to offer?
You'll always need at least one other form of payment since some places won't accept NFC contactless transactions.
This does eliminate a stack of loyalty/membership cards. Also, it can be used for event tickets.
However, the main reason why this system took off in Japan six years ago is they got it to work as a Mobile Suica card (which supports one of the major transit systems in greater Tokyo).
Clipper Card is the NFC transit card in the SF Bay Area. I can easily keep BART, Muni, and Caltrain passes plus cash, all loaded up on one card. No more ticket vending machines, no more paper tickets. Just wave over the terminal and go.
The Japanese figured out how to secure this technology, so if you want to be paranoid go ahead, knowing that tens of millions of Japanese use this system every day.
"Apple's service may be able to tap into user information already on file, including credit-card numbers, iTunes gift-card balance and bank data..." the report said, citing a financial industry adviser. It was speculated that the inclusion of an NFC chip could compete with services from Visa, MasterCard, eBay and PayPal.
Apple will not get in to payment business and I am sure you will not be able to use your iTunes account at Walmart. The way I think Apple will do it is that they will include NFC chip and provide the developers with the necessary APIs so they can use it. Visa, MasterCard, eBay, and PayPal can all develop their own iOS apps and maybe those apps will have background processes so you don't have to launch it every time you want to pay for something.
deleted
However if I can share contacts, apps or something like that using NFC I would be more inclined to use it. (of course we already have blutooth for that)
These are insecure, watch this video -- this guy who easily COPIES the info on RFID/NFCs from unsuspecting passers-by, which means it's even easier for companies, employers, government to do the same!:
http://www.youtube.com/watch?v=7AfhqY5lbOQ
See the free documentary movie covering this topic: America: Freedom to Fascism:
http://freedomtofascism.com
Also read Spychips:
http://spychips.com
See FaceTime for the proper way to introduce new hardware with the proper software front-end.
Wow are people ignorant. You do NOT want NFC/RFID spychips! aka "little brother" They are insecure and are not in your interests of privacy.
So that'd be stopping using a VISA card or current chip and pin then eh, what with their insecurities?
Apple has been pretty tight, and locked down with Bluetooth - if they do NFC, will they be laser focused on this? I'd love to see low power BT4, and a wideranging NFC so it can be used for lots of things - but we'll see.
Surely they need an infrastructure, but we haven't sniffed out the NDA'd companies yet? Not likely that there are many that could actually roll out NFC, unless they're going to test market it with a few specific customers (we're looking at you, Starbucks).
Wow are people ignorant. You do NOT want NFC/RFID spychips! aka "little brother" They are insecure and are not in your interests of privacy.
These are insecure, watch this video -- this guy who easily COPIES the info on RFID/NFCs from unsuspecting passers-by, which means it's even easier for companies, employers, government to do the same!:
http://www.youtube.com/watch?v=7AfhqY5lbOQ
See the free documentary movie covering this topic: America: Freedom to Fascism:
http://americafreedomtofascism.com
Also read Spychips:
http://spychips.com
The extreme (to put it lightly) nature of your post makes me think there is no issue with NFC. At least not as unsecured as any other networking option used to connect to other devices.
Thank you for putting me at ease. That is not sarcasm!