“Apple is working on technology which would enable customers to make purchases with their iPhone or iPad devices, according to Bloomberg,” Scott Rubin writes for Seeking Alpha.
“Users would be able to access saved bank account information or credit card numbers,” Rubin writes. “Apple engineers are harnessing ‘Near-Field Communication’ (NFC), a technology which can transmit and receive information up to 4 inches, according to the article. The products are expected to be introduced to the market sometime this year.”
Rubin writes, “Once the technology hits the market, it may threaten the credit card companies. If users can access their bank accounts directly to make purchases and avoid using a credit card, companies like Visa (V), Mastercard (MA), and Discover (DFS) may see a hit to their revenues.”
Full article here.
MacDailyNews Take: The following was written over 8 years ago: This device, able to be made today with current technology, would easily be “The Device.” Running Mac OS X or a mobile variant, it would allow the user to communicate via text, audio, and video. It would snap digital photos and organize them, do email, and browse the web. It would sync automatically with your desktop or portable Mac… It would absorb the iPod by playing AAC / MP3 audio and interface with iTunes, but it would also play feature-length MPEG-4 movies, too, in full color… and any number of websites in your pocket. McDonald’s Drive Thru’s would accept payments via Bluetooth from “The Device.” – SteveJack, MacDailyNews, December 10, 2002
[Thanks to MacDailyNews Reader “GetMeOnTop” for the heads up.]
I can hardly wait for that really big Solar flare.
No, it won’t make credit card servicers obsolete. There still will be a need to securely access your bank account, and Visa and MasterCard will just move into this arena. Merchants will still need the back-room services. Just a different format.
I want to walk through the grocery store, scanning and bagging my food items as I shop. Every item added to my cart is weighed and added to the overall weight of my cart. Bar codes tally prices, coupons and discounts, and update my idevice’s database.
When I reach the register, my idevice will sync with the store’s and off I go.
all the worlds con artists, hackers and assciated low life will be waiting for this with bated breath
Wouldn’t it be amazing if Apple is the company that makes chips that can be implanted into forehead or hand for purchases?
The part this misses is charge back and fraud detection. When credit cards were first created there were laws put in place to protect consumers. Giving people direct access to your bank account bypasses these protections and laws. Unless there is a change in banking regulations or banks develop some new independant products credit card companies are still going to be raking in the cash. Ever try to get your money back from PayPal when the victim of fraud…I HATE them but there is nothing that protects your purchases like a standard plain old credit card transaction.
Isn’t this ability the same as using your debit card? A direct transfer of cash from your bank account.
I don’t see how this could affect credit card companies in the least. Instead of swiping your credit card, you wave your phone. Both will likely be connected to the same account through Visa, MasterCard or whatever. How does this impact their revenue? Also, on a personal level, I’m not terribly worried about the credit card companies potentially losing revenue, heh.
Chips implanted in sex organs will revolutionize the escort service industry and make fake orgasms a thing of the past.
@SteveJack Nice prognostication.
I’ll never forget in 1990, the owner of one of my favorite local record stores predicted the iTunes store. He described it exactly as Apple implemented it.
I didn’t record it for posterity but his clear and certain exposition left a deep impression with me that it couldn’t be any other way.
I know it would be great to have this in your phone but this is not new tech, Mobil has had the little key fob that connects to your CC for years. And this wont effect CC companies at all you just will need to carry only your phone and no physical card.
Put my drivers license and passport on my iphone next
” width=”19″ height=”19″ alt=”smile” style=”border:0;” />
as long as you can control the fraud because you are taking signatures out of the equation
Yes, this is going to happen in a very big way. Let’s go through the questions:
1) Does it increase the utility and user experience?
Yes, obviously.
2) Would it sell more iOS devices?
Yes, as it gives them a competitive advantage.
3) Would it make use of the enormous mountain of cash?
Yes, Apple would need to put in a significant capital investment. It would also need to keep cash in reserve for this.
4) Would it need a good sized data center?
Yes, as with most of the points here, I’m going with the thought that Apple would go this alone. However, Apple could partner with someone like Mastercard, Visa, or even someone like Star or Plus. It’s a question of more control and profit, versus more initial merchant acceptance.
5) Could it introduce new products that Apple has been market testing?
Yes, see iOS devices being used as POS systems. Apple could come in and introduce full merchant systems including iOS devices and Macs to manage inventory and other aspects of the business. Kill those PCs as cash registers.
6) Does it extend the halo effect and bring new people in?
Absolutely, first merchants get hooked with the NFC payment, then buy the whole merchant package.
7) Does it end up making Apple a ton of money?
Yes, just like Apple said it only needed a small fraction of the mobile market, Apple only needs a fraction of the Trillions of dollars charges by merchants to make a ton of money.
8) Does it redefine an industry?
Absolutely. Apple can get rid of all kinds of BS in the process while making it much easier and better in every way.
9) Would Apple have a good go-to-market strategy?
Yes, as Apple already has a huge army of consumers with accounts already with Apple. And you wouldn’t necessarily need an iOS device. Apple could issue cards as well, and convert gift cards into the system.
10) Are there cost savings?
Yes, Apple ends up saving a ton of money on the micropayments.
These types of services are already available in Europe, so I don’t see why people are falling all over themselves about them? The major service providers like AT&T, Verizon & T-Mobile have already created a money transfer service with Discover to make the charges and bypass Visa & Mastercard.
Yes, cool. But iPhone would just replace the Debit card. It would work the same way.
Would you need to punch in a pass code after waving your iPhone?
Security might require it.
As to credit cards going away….. I tried not to laugh myself off my chair.
As long as there are stupid people that want to spend more money than they have, then pay back those bills at three times what they were, sure, credit cards will always be around.
Along with the thieving banks that own them.
I cannot use the Apple Store anymore because they will not charge the account I’ve asked them to use. Instead, they charge a second account of mine (from which I moved all my money to the first in order to make my sizable purchase).
My second account then incurs multiple overdraft charges. Apple doesn’t warn, notify, remedy, nor make restitution in this case. They do offer extensive circular logic on inquiries to no good end.
Now, pre-order a movie on the iTunes Store. Try to download that movie when it becomes available and get presented error messages of internal store errors for days.
Now they want direct access to my accounts? Not in a lifetime.
Apple can’t handle NFC anytime soon, I suspect. It is just not a part of their culture. Unless….
Have you ever seen a brightly shining apple turn rotten? Just keep your eyes open.
Face the fact that the new Apple NSA guy means intelligence collection is mandated as a part of the NFC security structure. That rotten apple will soon become your big brother, or worse.
NFC stuff is not just another feature set on our mobile devices. Every picture you take, every person you want to track, every note you make for yourself, every call you make… Well, that data will be going somewhere not expected, a place you won’t realize.
From a national security viewpoint, NFC may present a potential gold mine of information of far more value than that anything ever offered by our landline telephone systems.
If anybody can make NFC work – and you better believe it, some very seriously-minded people find this technology compelling – Apple may be the one deemed most likely to succeed.
Apple? Well, think of ol’ George Patton now. Find a way or make one! Aggression, international at least, is the name of this game.
You think Apple has changed in any way lately?
@deadly,
I’m not sure, but after looking at Apple’s quarterly report, I think Apple may have customers not experiencing the same account issues as you.
crappy headline.
No, Apple will not replace the credit card, just as the credit card has not replaced money, and money has not replaced bartering.
Apple may, however, be a forefront player in offering a mobile technology that offers one more option for cashless transactions.
@deadly:
Better go back on your meds.
@mike
I don’t know. Credit is evil. Imagine life without credit and you see a world in which everyone pays cash. I live that way now and life is a lot less complicated.
No where else but America can you buy things with money you don’t have! No wonder the financial sickness that ails this country was caused by credit.
If it weren’t for the poor and stupid in this country we wouldn’t be in this horrible financial mess.
Banking could easily move toward a debit-only system and merchants would love them for it. No more exhorbitant, tidal-like transaction fees predicated on valuation of the dollar.
We don’t need the credit card companies to act as middle-men between our banker and our merchants. How in the world did they inject their ass into the mix, anyway?
Tacking on a five-percent mark-up because they own the POS terminal, and giving their cut to the phone company, has got to stop.
There has got to be a better way and Apple certainly has the means to change, yet again, the way this country does business.
I predict that in 5 – 10 years, the wallet will seem as quaint and “for fashion” as the watch is today. Can’t come soon enough for my back, which is plenty screwed up after years of sitting on the darn thing!
Seems very insecure to me. Take some ones phone and spend like mad…