Apple testing near field communication prototypes; tech likely to debut in iPhone 5

InvisibleSHIELD.  Scratch Proof your iPhone 4!“Over the weekend it was reported that Apple hired Benjamin Vigier, an expert in near field communication (NFC), a short range wireless protocol most synonymous with contactless payments,” Steve Cheney reports for TechCrunch. “This key Apple hire is perhaps the strongest public signal yet of Apple’s intent to use NFC to build on its micropayments franchise and disrupt traditional point of sale using a mobile commerce model.”

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“There is no doubt that Apple wants to enable native support for mobile payments and authentication—its myriad of patents and installed base of 100M active iTunes accounts with credit cards on file make this a no-brainer,” Cheney reports. “But I’ve learned of an even more revealing sign that Apple will integrate the technology—sources tell me that Apple has built NFC-enabled iPhone prototypes using hardware from NXP Semiconductor, and is testing mobile payments today… And though my sources say Apple is currently testing NFC chipsets from NXP, it’s highly possible that Apple chooses technology from Broadcom.”

Cheney reports, “The existence of prototypes would almost surely suggest that Apple will include NFC in iPhone 5, or whatever Apple decides to call its next iPhone… Short range wireless also has compelling use-cases beyond commerce, and it’s clear Apple is thinking of integrating NFC into its Apple TV and MacBook lines to transfer data between devices at high speeds. Imagine freshly-snapped photos from an iPhone 5 transferred instantaneously to a new iTV device by placing the devices close together for a few seconds.”

Cheney reports, “In fact, Apple’s patents say a lot about its ‘hardware network-effects’ strategy and how NFC could accelerate sales for Apple—iPhone 5 users would be more likely to buy an iTV and vice versa… Proximity-based integration with iAd is another potential gold mine for Apple. Think of the power of serving ads, coupons and loyalty awards based on presence.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Brian S.” for the heads up.]

17 Comments

  1. Am I the only one that thinks the idea of replacing your credit card with your phone is unappealing? I’ve lost my phone far more times than my wallet. It takes me longer to take my phone out of its holster than it does my credit card out of my wallet. I don’t want to walk near something and accidentally pay for something…what kind of verification would be present? This idea has a way to go before I’m comfortable with it.

  2. The use of phones for small payments is very common in Korea and used with a wide range of hand sets. While not important to me, Apple is playing catch-up with makers in Japan and Korea on this front.

  3. Okay class, listen up: Above, we have a frigtard from TechCrunch who has violated a rule of English grammar, something for which I shall deal with harshly through the swift yet painful administration of my wooden ruler. For future reference, please note the following:

    WRONG: “…myriad of patents…”
    RIGHT: “…myriad patents…”

    There is NEVER a “myriad of” in proper English usage. For his heinous infraction, Mr. Cheney will have to submit to severe corporal punishment. My only concern is that he might like it too much.

    This concludes our English lesson for the day. Class dismissed. Have a nice weekend.

  4. NCIeman
    This I don’t undestand. How can you lose your phone, and more than once? Do you lose your keys? Other stuff? On drugs? Booze? How old are you? Senility? I have never lost anything and I am an old dude.

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