posted at 05:50
Author Name: Jay Yarow
Why Apple Is Finally Ready To Get Into Mobile Payments
Apple will reportedly get into the mobile payments space with the forthcoming iPhone 6, and the iWatch. John Gruber, who writes about Apple, says he's hearing about a "a new secure enclave where you can store your credit cards, so you can pay for things at brick and mortar retail stores just by taking out your iPhone, but only if it's one of the new iPhones." Gruber's report is backed up by numerous reports that Apple will include NFC, or near field communication, in its next iPhone. Why now for Apple? These two sentences from the FT help to explain quite a bit: "Apple's arrival may come at an opportune moment, as US retailers prepare to upgrade their cashier terminals. Visa and MasterCard have set a deadline of October 2015 to switch from swipe-and-sign credit card payments to European-style chip-and-PIN terminals, many of which could also include NFC capabilities." Apple tends to wait until a new technology is widespread enough to be used by most people. With all retailers updating their registers in the coming year in the U.S., NFC should be common enough for Apple to make use of it. Unrelated to the issue of timing, but still important in any talk of Apple and mobile payments, is that fact that Apple has an added element of security with its fingerprint scanning TouchID technology. The TouchID will probably a big part of any mobile payment Apple does with the iPhone.

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