Apple steps closer toward integrated mobile payment market

“Apple will pay $8 a share to purchase AuthenTec for $356 million, in a strategic move designed to further position the iPhone in the center of the electronic payment market,” Markin Abras reports for MacDirectory.

“AuthenTec, headquartered in Florida, makes sensor chips that are used in personal and mobile devices. Its fingerprint security technology is licensed worldwide and is currently used by several of Apple’s biggest competitors, including Samsung, HP and Dell for its desktop computers,” Abras reports. “Its fingerprint technology is also used in mobile phones in Japan in order to authenticate mobile payments. ”

Abras reports, “MacDirectory spoke with Karl Volkman, chief technology officer of SRV Network, Inc. , to further understand how Apple will position itself in the digital payment market.”

The full interview is here.

[Thanks to MacDailyNews Reader “Justin A.” for the heads up.]

Related articles:
How NFC could fit into Apple’s iPhone 5 – August 29, 2012
Apple wins NFC-enabled barcode-reading ‘on-the-go shopping list’ patent – August 7, 2012
Apple’s $356 million AuthenTec buy a possible prelude to mobile e-payments – July 27, 2012
Apple patent application details iOS devices that control everything in your home via NFC – July 27, 2012
Apple to buy AuthenTec for $356 million – July 27, 2012
Researcher takes complete control of Android and Nokia phones by merely waving another device near them – July 26, 2012
Mobile e-payments via NFC not ready for prime time until Apple says it is – July 18, 2012
How local businesses and Apple’s Passbook could deliver an unbeatable iWallet – July 13, 2012
The death of cash; paying by iPhone about to become a way of life – July 9, 2012
Don’t overlook Apple’s new Passbook or you might miss the future of payments – June 12, 2012
Apple granted U.S. patent for all-new iWallet credit system architecture – June 5, 2012
Inside Apple’s secret plan to kill the cash register – May 19, 2012
Apple’s iWallet: The one that will rule the world – March 21, 2012
Apple’s new iWallet patent hints at new killer app – March 9, 2012
Apple wins major U.S. ‘iWallet’ patent; the one that may one day ‘rule the world’ – March 6, 2012
Apple invents ingenious security system for the iWallet era – January 9, 2012
Apple patent app describes future iOS devices communicating with parking meters, doors, cash registers and much more – September 22, 2011


    1. Yeah, I think it is a done deal. Although technically either party could back out, their preliminary agreement calls for significant penalties on AuthenTec if it chooses to go ahead with the deal — cash plus a licensing deal that would damage AuthenTec’s viability as an independent company. Details were in the news a couple of weeks ago.

      According to this article, Apple pushed AuthenTec hard to adapt its technology to Apple products in the early part of the summer and insisted that work on the project not slow down even though the deal hadn’t been finalized:

      Work on the update was completed on July 3. And I believe actual assembly of the iPhone 5 began about mid-August. So it is theoretically possible that the iPhone 5 could have AuthenTec hardware inside (with software updates to come later?). It is not obvious why Apple would have pushed AuthenTec so hard if there were no intention to include its technology in the new iPhone.

      Even if July 3 until Aug. 15 (let’s say) is not enough time to make all preparations for the new iPhone, I find it difficult to believe that Tim Cook would ship a new iPhone 5 if the AuthenTec technology could be included with a delay of only 1-2-3 weeks. Like Siri, the impact of fingerprint recognition on iPhone sales would be huge, even if at first its functionality were limited to a few key tasks.

      Finally, that quote from the source article (interview with Karl Volkman) was evasive and does not support a conclusion that iPhone 5 will not include fingerprint recognition. Rather than reply ‘No’ Volkman said: “It would be extremely difficult to acquire AuthenTec and integrate the technology to meet the fall release date.”

      Yeah … extremely difficult. Not impossible. So include it in the ‘One more thing’ portion of the product introduction.

      1. Plz overlook the typo in the 2nd sentence above. 🙁

        The penalties on AuthenTec apply if it decides NOT to go ahead with the Apple deal.

        This quote is pertinent: “In connection with the acquisition, Apple has entered into what appears to be a crown jewel lock-up with respect to AuthenTec’s assets. A crown jewel lock-up is an ’80s style mechanism intended to prevent a third party from trumping a takeover offer…. A third party would find that AuthenTec’s intellectual property had suddenly been turned over to Apple.”

  1. A couple of thoughts come to mind:

    I *really* hope Apple nail the mobile payments thing, and soon. I’d prefer to only carry my phone.

    I find it ironic that two of my pet hate and least trusted companies (Google and Paypal) are the ones pushing for mobile payments. I can’t trust them thieves…

    If Apple stop supplying shame sung and other copiers with these chips to have exclusive use in their devices there will be a whole new realm of copying and patent wars – which seem to honor the thieves…

        1. I’d use it way more if PayPal knew which shop I was in and automatically popped up with your purchase total pre-loaded when you were ready to buy something.

          I think with this and Passbook, that’s where Apple is going.

      1. As a seller I have continual issues with Paypal until I stopped using them. Same with eBay – again I stopped using eBay for sales and never looked back. eBay froze my account for offering direct cc processing and still have my money (unused fees) which they refuse to pay back. . Paypals fees are also terrible and their exchange rates (I’m in Aus) again are terrible. If I have to use Paypal, it also defaults payments from my bank account…this again is an underhanded tactic. They still charge the seller exorbitant fees based on a cc processing but it comes from a direct deposit which is free. This also adds up to 5 days for the payment to clear. Maybe an isolated issue for Australia but not the way I imagine Apple will do it!

        1. EBay went from being rather easy and convenient to use for buyer and seller to the worst experience of your life! EBay makes it as difficult as possible in particular for the seller. I would never use eBay again unless it was an extremely desperate situation that I couldn’t avoid. Even then I would absolutely hate every moment. I can’t believe that someone hasn’t made a run at eBay. I know they are the biggest and basically only one out there but the experience with eBay is just awful.

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