More and more rumors suggest that iPhone 6 will have NFC technology for mobile payments.
It seems that Apple has chosen the perfect timing for the new technology. With more than 800 million credit cards on file thanks to iTunes, giving users a digital wallet is the logical and practical next step in development. Apple has more than twice the credit card information than Amazon and Paypal combined.
Leaks suggesting a NFC chip have been spreading for months, but as the official event is closing, it seems that NFC is a done deal. The official event for the launch of iPhone6 is scheduled for September 9. The NFC chip is rumored to be made by NXP. With Apple entering the area of mobile payments, experts believe a new era will begin. Android phones offer NFC technology and mobile payment for 3 years by now, but with little success.
The Competition
NFC technology has been used by other manufacturers for several years by now. Nokia, Sony, BlackBerry and Samsung, all have NFC technology in their devices. The advantage of near-field communication is that it can be used even when the device is switched off. NFC allows smartphoens to be paired with other devices just by placing them close one to another.
Google has been using NFC technology for the application Google Wallet since 2011. The competition from mobile payments also includes wireless carrier-backed Isis and eBay. For a long time, Apple refused to enter the market, due to the additional costs for engineering.
Collaborations on the Way
Even though iPhone6 is still not on the market, and NFC technology is still a rumor, there are reports, suggestions Apple already has a deal with several major payment networks in the pocket. Those include American Express, Visa and MasterCard. Apple is bound to benefit from those partnerships in the long run and maybe even try to substitute traditional credit cards. The future might prove that mobile payments will become the mainstream option for mobile payments.
Downsides of NFC Technology
NFC Technology is the next big thing in mobile payment. However, it does have some downsides. For starters, not many retailers have the Point of Sale system needed to carry a transaction using NFC technology. The system is costly, and some opt to stick to SMS and WAP based payments.
Another downside is that NFC technology makes devices even more prone to viruses and hacker attacks. The mere fact that devices now have an access to credit cards that can be used for paying is enough lure for hackers all around the world. Apple and other manufacturers will have to pay extra care and attention to protection and safety.
The Right Spot at the Right Time
Everything points out that Apple has caught the perfect storm. Back in 2011, NFC technology and mobile payments were topics nobody cared about. Today, 15% of customers in Starbucks use their phones for paying. The startup Coin attracted interest from almost everyone with its magic credit card that lets users store multiple cards in their device. Apple’s own Passbook application has helped millions of people replace physical tickets and boarding passes with digital ones. All this bears the question “When will we need only a phone in our hands and nothing more?”
Related ItemsiPhone 6
