Apple iPhone 6 Will Finally Get NFC For Mobile Payment System

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Apple will add near field communication (NFC) technology to iPhone 6 for mobile payment purposes, rumors said.

A report from Morgan Stanley, an American multinational financial services company has supported the rumors that Apple will finally incorporate NFC to the most awaited iPhone 6 to be used with its rumored upcoming iWallet mobile payments system.

According to Morgan Stanley, Apple is contemplating in choosing NFC as the key technology for its mobile payments system. Morgan Stanley also revealed that the NXP Semiconductors NV, which supplied Apple with the M7 motion-sensing chip found in the iPhone 5s would likely provide Apple all the necessary wireless hardware.

“NXP is well positioned to participate in Apple?s mobile payments ecosystem. The company signed a licensing agreement with a customer in Q4?13, who we believe is Apple, related to its emerging ID business. A recent patent filing by Apple revealed potential use of NFC and secure element, which we think could be embedded. NXP has also accelerated R&D spend to support a new program related to the IP deal, with revenue expected in 2H, lining up well with the launch of iPhone 6. We see this potentially adding $250mn in sales and EPS of $0.25 in 2015,” Morgan Stanley said.
Early this year, Apple?s CEO Tim Cook admitted in an earnings conference call that the company is interested in the mobile payments segment.

Cook said, ?The mobile payments area in general is one that we?ve been intrigued with. That was one of the thoughts behind Touch ID, but we?re not limiting ourselves just to that. So I don?t have anything specific to announce today. But you can tell by looking at the demographics of our customers, and the amount of commerce that goes through iOS devices versus the competition that it?s a big opportunity on the platform.?

Apple Store

Aside from the NFC-based wallet that would allow customers to make purchases wirelessly, Apple is reported to have been continuously updating its in-store point-of-sale system.

This is not the first time that Apple was rumored to incorporate NFC. If you?d remember, KGI Securities analyst Ming-Chi Kuo also said in his predictions that Apple will be building NFC chips for the iPhone 6.

(Photo courtesy of http://www.apple.com/retail/)

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