NFC seen coming to the next iPhone

By , Jun 25, 2012

When a high-ranked Apple executive says Apple won’t do something, expect quite the opposite. So when Apple’s worldwide marketing chief Phil Schiller told the Wall Street Journal that Passbook, a new app in iOS 6, won’t be a direct payment product, there was more to his words than met the eye.

We’ve also heard countless rumors involving an Near Field Communication NFC chip coming to the next iPhone to provide a hardware basis for secure contactless payments on the go. Apparently, recent code dumps that broke the taller iPhone news also indicate that NFC controllers are directly connected to the power management unit of the next iPhone…

Folks like SITA’s CTO Jim Peters are convinced that Apple will make NFC happen with this year’s iPhone revision, said to be slated for launch in October. He expects 2012 iPhones with NFC to dominate e-tickets.

Noting that carriers, handset makers and Google are all trying to upend one another in order to take a cut of NFC transactions, he observed Apple’s focus on the end user will help the company mainstream mobile payments:

Who is thinking of the user? Apple. They don’t argue about it with anybody. They came out with Passbook last week, which is an electronic wallet that they are going to start putting stuff on.

He then dropped the bomb:

They are going to get people using it (the Passbook application) and then all of a sudden they will allow credit cards to be used in there, on the next iPhone, which will include NFC.

Speaking at the annual Air Transport IT Summit in Brussels, Belgium, Peters summed it up:

You need to get ready, this is coming. This is going to happen. By the end of the year the majority of smartphones that you go and buy will have NFC on them. If in October the next iPhone comes out and it has NFC on it, it’s game over.

MasterCard’s Ed McLaughlin is also adamant that Apple is working on a wireless mobile payment system that involves NFC and iTunes, recently dropping the following hint:

I don’t know of a handset manufacturer that isn’t in process of making sure their stuff is PayPass ready.

Seth Weintraub, who runs 9to5Mac, notes the possible implications of NFC hardware in the next iPhone:

The implications here are obviously monstrous. With the recently announced PassBook application (which we detailed prior to its announcement while speculating about an NFC tie-in), Apple will be set to compete with Google Wallet and the similar service Microsoft unveiled last week.

And provided Cupertino partners with payment processors, it could process real-world transactions via iTunes:

Apple could tie in with a payment processor like Citibank’s PayPass system for credit card transactions or it could become a payment processor of sorts with its hundreds of millions of credit cards already on file at iTunes.

NFC would also allow iPhone users a quick and easy way to share files from one iOS device to another.

I think it’s inevitable that NFC is coming to iPhones now that Google and Microsoft have made some moves in this space. The market for mobile payments is on the verge of exploding and Apple needs a solution to compete.

Not everyone agrees with Weintraub, though.


One of Apple’s many patents involving NFC technology.

Mike Elgan speculated in his Cult of Mac article titled Inside Apple’s Secret Plan to Kill the Cash Register that Apple could instead tap Bluetooth 4.0 technology for iWallet.

“It’s already in your pocket”, John Brownlee explained in another post at Cult of Mac, apprehending the fact that Bluetooth 4.0 is already found on latest iOS devices.

So. theoretically speaking, all Apple needs to do to make iWallet a reality is ship an app (it just did that with Passbook), cut some partnerships and make iTunes backend changes.

What do you think, will Apple implement NFC hardware inside the next iPhone or find a better solution?

Would you be willing to pay for your groceries using your iPhone and your iTunes credit card on file?

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  • http://twitter.com/klouud Timothy Polumbo

    Yes. My debit card is my itunes credit card so its all the same. BUT if Apple charges for this service then NO.

  • http://www.facebook.com/luis.rivera.1460693 Luis Rivera

    Great i been waiting for and is coming.

  • http://www.zelahit.co.il/ zelahit

    usually apple goes agiesnt the flow, now they go with the flow :)

  • http://twitter.com/Dongiuj DonGiuj

    Nope.

  • http://www.facebook.com/profile.php?id=728548305 Miras Safadi

    Apple always goes with the best…and if they think of a better idea than this tey’ll go with it!

  • http://twitter.com/Grolubao Grolubao

    Great! Something that Android phones have forever…

    • Falk M.

      Oh, as if Android didn’t deliver delayed “me too”s…

  • Falk M.

    Think about the possibilities if you could use iTunes gift cards to pay for flight tickets for example.
    Often enough you can grab iTunes cards for 20% less, combined with rebates of the store or whatnot, this would be a Scottish dream come true!

  • http://www.GoldenGateDomains.com/ Golden Gate Domains

    What would be really great would be to integrate our Driver’s License / Passport / State ID in to this NFC / Passbook product (perhaps with an additional password for top level security).

    How awesome it would be to just grab your iPhone and go!

    Further integration would be to have it integrate your new/future automobile’s NFC chip so really all you would need to carry is your iPhone!

    Obviously, the integration with Government ID would be a long-drawn out process that probably could take years or even decades, but I know that Passports now have RFID chips – and I believe some States now issue Driver’s Licenses / ID Cards with RFID or NFC chips. So, it certainly is within the realm of possibility!

    What do you think???

  • maurid

    Oh look at them, thinking NFC would mean game over for competitors. You have so much to learn yet.

  • zijohn

    There is got to be an iOS app Passbook Exchange, or something like that, remember Facebook Exchange and Phonebook Exchange?

  • http://twitter.com/_zYx Maciek

    I can’t see the point of contactless payment…

    When you are about to pay for something, you take your wallet out. When you take your card out the wallet, the seller sees it and then has to choose the right option on their screen in order for you to pay by credit card and not by cash for example, then you just put your card in, enter your pin, job done! You don’t even have to talk to the seller.
    If you want to pay using “ContactLess” you need to let them know. This means you’re actually wasting few more seconds the tell them this and another several seconds to get that ContactLess payment to work… if their computer doesn’t crash.

    I’m sorry, but I attempted to pay twice using this method and I’ll probably never use it again.

    Until there will be an app for all my cards, ID’s, Driving License like someone said before, I can’ see the point of contactless payments… at all.