“Apple will be utilizing near field communication (NFC) technology and tokenization technology in the new iPhone 6 and iWatch as a part of its payments initiative, according to sources close to Apple and with knowledge of Apple’s plans for its new smartphone,” Ian Kar reports for Bank Innovation. “In addition, Bank Innovation has uncovered Apple patents dating back to 2009 related to the tokenization process, confirming the company’s long-standing interest in tokenization.”
“Apple stores already support NFC. This was confirmed by a test in a store and by sources, who told us that the Apple Stores and Apple retail partners are using the Verifone MX 915 terminal for their point-of-sale terminals (not to be mistaken with mobile point-of-sale terminals),” Kat reports. “Many are familiar with NFC technology, but tokenization may be a different story. Financial institutions — card issuers and networks — prefer token technology because it replaces primary account numbers, those 16-digit card numbers on the front of credit and debit cards. Instead, the tokenization technology uses complex codes that are easily transmittable over the air and between devices, but that are used only once, so even if they are intercepted, are of no use to fraudsters.”
“Apple’s interest in the use of NFC technology and tokenization — and using the combination both – has broad, long-term potential with valuable use cases. Apple can potentially use tokenization technology and apply it to ‘real-life applications, as well as like transit, building access, and hotel keys,’ said James Wester, global head of payments at IDC Research,” Kat reports. “And knowing Apple, even beyond those.”
Read more in the full article here.
MacDailyNews Take: A little birdie tells us that “for many reasons, everyone is going to want Apple’s wearable on their wrist.”
In just two of its myriad functions, Apple’s wearable device will let users seamlessly pay at convenience stores, grocery stores, sporting events, concerts, shopping malls, gas stations, and restaurants while also serving as keys for their vehicles, hotels, residences, and more.
[Thanks to MacDailyNews Readers “Lynn Weiler,” Dan K.,” and “Arline M.” for the heads up.]
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