iPhone 5 Rumors: NFC Payment System Not Implemented?

In anticipation of a new iPhone this summer, insiders disclosed that Apple has no plans to include Near Field Communication (NFC) technology in the iPhone 5

Apple has recently been reported to include near field communication features in the next generation iPhone and iPad to allow customers to use those devices to make purchases at retail stores. Photo: shan peter/Flickr

However, sources familiar with the matter told The Independent that the company revealed in meetings that NFC won’t be on the feature list of the next iPhone, expected in June or July.

Sources at several of the largest mobile operators in the UK said: “The new iPhone will not have NFC, Apple told the operators it was concerned by the lack of a clear standard across the industry.”

Yet Apple is reported to be working on its own adaptation of NFC, which would connect payments through iTunes. The Cupertino-based company believes it will introduce the technology in a handset likely to be released next year.

In June Apple was granted from the United States Trademark & Patent Office, an NFC related patent called “iWallet.”

The feature is designed to ‘utilize NFC for keeping track and controlling financial transactions through the iPhone,’ writes PC World.

iWallet is also expected to gift iTunes with fellow users.  With near field communication, iPhone users will be provided with instant digital communication through a simple touch or placing devices in close proximity of one another.

The Apple’s move seems to be a response to Google’s own NFC version “Google Wallet,” who has already stepped ahead with major credit card companies.

Google along with Verizon, AT&T, and T-Mobile are all developing its own solutions of the near field communication.

The statistics show that Apple currently holds over 400 million credit card accounts through its iTunes and iPhone customers.  If the company pulls ahead, it will “come out singing” once the time is right.

“What [Apple] essentially [has] is everything you would store in a physical wallet apart from the cards,” said Nick Holland of the Yankee Group when commenting about Passbook, a recently launched iOS app.

“I imagine Apple will layer physical world payments as a future capability,” added Holland.

The Wall Street Journal tried to analyze Apple’s strategy and talked with sources inside the company. The paper came to the conclusion that iPhone and iPad maker won’t introduce NFC in the near future as the market isn’t ready for it yet.

Phil Schiller explained in an interview that at present the companied, providing mobile payment solutions are struggling for supremacy in the market and Apple doesn’t want to join that fight, explaining that they are “all fighting over their piece of the pie, and we aren’t doing that.”

Despite the development of a payment system, using Apple technologies such as iTunes, has been discussed, the company decided that now is not the proper time to implement such a system in its products.

Piper Jaffray analyst at Gene Munster said that ‘Apple’s reservations regarding such changes’ may be explained by the fact that the company just want its competitors to test an innovation before coming with its own version of the tech.

“Apple is always a comfortable number two,” says Munster. “They let their competitors do their market research for them.”

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