iPhone 6 May Feature NFC Technology
iPhone merchant services users can rejoice: there are rumors that Apple could finally adopt Near Field Communication (NFC) technology for mobile payment plans. The company has been far behind the curve on this technology for too many years, while its largest competitor, Samsung, has been touting the technology as a major feature for its last several phones.
NFC technology is a set of standards for mobile devices which allow the devices to connect via radio signals when the devices are touched or brought within a few inches of each other. So far in most mobile devices the technology has been used as little more than a gimmick for sharing files or making it easier to pair Bluetooth devices. However, if Apple integrates the technology the way some are predicting, it could be a game changer.
So far, few devices have leveraged NFC to its fullest potential as a vehicle for mobile payments. Apple could integrate the technology across the board as a means by which iPhone merchant service providers can perform “handshake” payment transfers. This could go hand-in-hand with the reported development of the iPhone mobile wallet, which would integrate with existing iTunes accounts. What this means is the moment the technology is implemented, there is a ready-made network of well over 600 million users instantly set up to perform handshake mobile payments, using Touch ID to both authenticate payments and track data for customer loyalty and marketing purposes.
In fact, Apple has already patented technology that applies to NFC for mobile payments, and CEO Tim Cook has admitted that accepting payments for the iPhone merchant is partially responsible for the development of the Touch ID authentication system currently in use on the iPhone 5.
If Apple adopts this technology for broad implementation of payment processing services, the innovation could be a complete game-changer for the entire mobile payment market.