“There has been a lot of talk about the addition of an NFC (near field communication) chip to the next-gen iPhone. This will allow the phone to be used as a swipe-it-yourself credit card. I consider this technology to be the most onerous ever,” John C. Dvorak writes for PC Magazine.
“This ‘good idea’ isn’t about the convenience of paying with a phone swipe, but the idea of running your tab through the phone company,” Dvorak writes. “If you think your banker is a gouger with dubious fees and no-leeway, what do you think the phone company will be like? Yes, let AT&T handle all your money for you, and see how that works out in the end.”
Dvorak writes, “Do not let AT&T or Verizon or any phone company anywhere near your day-to-day financial transaction business! You’ve been warned.”
Full article here.
MacDailyNews Take: Speaking of screws, Dvorak’s tinfoil-covered head has more than a couple loose. Unlike Mr. Dvorak, we’ve decided to wait until (1) there actually is an iPhone that allows for NFC payments; and (2) the details of how transactions will be handled are presented, before we issue grim proclamations and dire warnings.
[Thanks to MacDailyNews Reader “Jeff T.” for the heads up.]
I would assume the payment would be iTunes account or at least a credit card that the user would setup.
This guy has to be the most anti-everything tech based journalist. Every time I see some article from him, it’s bashing technology.
It seems that LG is getting in the act also….
http://www.kdvr.com/news/nationworld/sns-rt-news-us-lg-electronics-trib-20110131,0,258722.story
Dvorak isn’t attacking your precious iPhone, so take a deep breath. He’s pointing out a very real flaw in this new technology and one that is already happening to credit card owners. People are having small amounts of money silently lifted by thieves who only need to get close enough to read your card. As one poster indicated, the major bank policies *say* they’ll refund any stolen money but then leave the burden of proof with the card owner. Often this is too small an amount to warrant the effort , or no proof can be found, and in both cases the card holder loses.
Personally, my PayWave cards reside in little tin lined covers that disable the feature while in my wallet. It’s the only way to be sure. Apple would be wise to make sure the iPhone has a disable Wave To Pay preference.
How can Anyone comment on Something that Apple have never Acknowledged ?
(Hey John Stop Sniffing whatever ur Sniffing)
If there is an extra fee charged to the end user for using NFC compared to just using your credit card then the technology is DOA. I’m assuming (till I hear otherwise) that this is not the case.
There are enough Dvorak’s in this world.
Apple would never let transactions go through the phone company. They have iTunes and can make money or break even on this directly.
The privacy of financial transactions is verry important. You can’t wait to think about IT when it’s already deployed. Private companies will always look for profit!
Like a couple of others here, my notion is that I will pay for our Michelin star meal through my iTunes (or iPay or whatever) account. Beating the bank and the phone company out of that business is part of the attraction for me.
DvORaK is a “Hit Whore”. Do not follow any link to his sites or articles.
Apple will never allow mobile carriers to process these payments – too many carriers in too many countries to keep the consistency that Apple demands.
Apple will just link anything to your iTunes account and bypass the banks and mobile carriers.This will push another revenue stream through your iTunes account to Apple, and will get more people to get iTunes accounts.
Oh and one other thing, Dvorak has predicted failure for every Apple product and service from the mouse, to the Mac, to the retail stores, to the iPod, iTunes, iPhone, iPad, TV, and pretty much anything else with an Apple logo. So far he has an unbroken record of wrong.
It would not surprise me at all if Apple turned the financial sector on its head just as it has done with the music industry, the mobile phone industry, the computer industry, and – eventually – the TV & film industry.
Apple often takes the current state of affairs to another level. They might teach the banks and credit card companies a lesson.
Given their history of customer service with me, I’d trust them with my money. Heck, I already trust them with a sizable portion of my investment money, and they have paid me very nicely.
Japan has had this tech for a few years now. Apparently, it works pretty well.
It probably won’t start off as a credit card replacement but rather a small change alternative akin to a iTunes gift certificate you top off. Here in Korea the system has been working well for public transportation, soda vending machines, and convenience stores for many years… They started out with a travel card, then moved to a key chain like device which you top off at any “Tmoney” vending machine that charges your credit (of the amount of cash you deposited) onto the chip… The system worked great for bus to subway transfers within 30 mins… No need to wait in line to buy a ticket, no hassle of coins or transfer tickets to mess with… The next logical step was to offer the option of putting the chip onto your phone if you wanted (since everyone has one here and always has theirs on hand). It worked so well convenience stores added readers as an alternative method of payment. Since every iPhone is connected to your credit card through iTunes, it makes sense and does seem very convenient because it eliminates the need for topping machines as the 3G connection offers direct and constant access to your credit card from anywhere any time.
Tell me this is not a giant step forward… Waiting in front of ATMs at 1am, standing in ticket lines, and trying to feed the correct change to the Coke machine is so 20th Century!
@brau
You think that on an iPhone there will not be a tap on the screen to authorize a payment?
Nobody knows the details on the NFC stuff.
I would assume that it will be off by default, and the user will have to open the NFC app or wallet or whatever, then swipe the iPhone and tap yes to accept the charges.
Or the tap yes to accept the charge comes up anytime the iPhone is swiped.
Personaly I wouldn’t mind a NFC app or whatever, something I have to initiate any charge.
Laughable! Hey, remember when this guy said the iPhone would flop..?
John C. Dvorak = dripping diseased douchebag dork
Oh wait, that was Patrick Lo. I can’t keep all of these idiots straight.
Dvorak is a well know fuckup. Assclown of tech
Give credit to Dvorak. He never stops trying.
NFC is merely a tool that can be connected to ANY service you like. If your phone company insists it MUST be them, then screw them and hack it to use some other service.
Despite all the FUD and BOGUS BS about NFC, it does NOT have to herald the death of credit cards or PayPal blahblahblah. You can USE NFC with any service you want. Therefore, if you like your credit card, have NFC trigger your purchases to it. If you like PayPal, have NFC trigger your purchases to it.
Honestly, TechTardiness is incredibly rampant these days. I cannot remember ‘tech journalists’ EVER being so outright STOOOPID. And of course Dvorak continues his role as lead curmudgeon TechTard. Someone please just turn the guy out to pasture.
Apple’s NFC will run thru iTunes or it’s iPay-iBuy etc. There will be no charge to the end user. Fees from merchants will be lot’s less than credit cards.
Apple’s goals with this payment system will be to make life easier and more convenient for users and in the process to enhance the eco-system which brings in more buyers in a “virtuous” circle, which increases the stock value and Apple’s cash, which gives Apple the ability to do what it needs to build the rolling juggernaut further and the cycle repeats.
What a tired old loser.
Dvorak is a fuckwit. Full stop. (or as you Yanks say, period).
@jubie
Because idiots like MDN keep posting him. You can call him an idiot and a hit whore but he’s laughing all the way to the bank thanks to the geniuses at MDN.
I don’t think it’ll be the phone company banking a profit over these transactions. It’ll be the credit card company and Apple.