Apple Investigating iBeacon-Assisted Mobile Payment Methods

Apple's iBeacon technology based on the Bluetooth LE standard is being installed in Apple Stores and other retail outlets to assist customers and send them promotions while shopping, but as noted by Patently Apple, a newly published patent application suggests this technology could also be used to send secure mobile payments while making purchases.

patent_ibeacon_payment_wireless
Patent application number 20140019367, filed in September 2012 and published today, describes a method that would send payment data through various wireless interfaces without compromising the user's data. The method uses two links -- one connection to a point-of-sale device to establish the initial connection and a second, secure connection that sends the payment information. This payment information is then processed by a backend server, which uses a shared secret to verify that the connection was secure before it authorizes the payment.

In one or more embodiments, a method of performing a commercial transaction is provided. The method includes establishing a first secure link over a first air interface by a purchasing device, the first secure link between the purchasing device and a point of sale device, identifying a second air interface different from the first air interface, establishing a second secure link over a second air interface, the second secure link between the purchasing device and a backend server, and conducting, using the second air interface, a secure commercial transaction between the purchasing device and the backend server using payment data secured by a shared secret known to a secure element in the purchasing device and to the backend server.

The payment method described in the patent may use NFC as well as Bluetooth and Wi-Fi to connect the mobile device to the point-of-sale terminal. Though iBeacon is not directly named in the patent, it is easy to see how the technology could be used as the conduit for the secure Bluetooth connection. Apple even notes in the patent that NFC "is less desirable for longer transactions," while Wi-Fi or Bluetooth has "more desirable characteristics for maintaining the link over time than NFC."

The use of Apple's iBeacon technology, rolled out alongside iOS 7, is expected to increase over the coming year as other retailers such as Macy's have begun piloting the Bluetooth LE technology. Most recently, the Consumer Electronics Association used iBeacons for a scavenger hunt at CES 2014, while Major League Baseball will be bringing the technology to stadiums.

Related Roundup: Apple Pay
Tag: Patent

Popular Stories

Apple CarPlay Ultra instrument cluster themes 01

Apple's 'CarPlay Ultra' Experience Now Available

Thursday May 15, 2025 5:07 am PDT by
Apple today announced that its next-generation CarPlay experience, now dubbed "CarPlay Ultra" begins rolling out today, starting with Aston Martin vehicles. Subscribe to the MacRumors YouTube channel for more videos. CarPlay Ultra is now available with new Aston Martin vehicle orders in the U.S. and Canada. It will also be available for existing models that feature the brand's next-generation ...
Apple CarPlay Ultra instrument cluster themes 01

Apple's CarPlay Ultra Is Here – Does Your iPhone Support It?

Thursday May 15, 2025 5:17 am PDT by
Apple's recently announced CarPlay Ultra promises a deeply integrated in-car experience, but not all iPhone users will be able to take advantage of the new feature. According to Apple's press release, CarPlay Ultra requires an iPhone 12 or later running iOS 18.5 or later. This means if you're using an iPhone 11, iPhone XR, or any older model, you'll need to upgrade your device to access...
iOS 18

Apple Releases iOS 18.5 With New Wallpaper, Screen Time Changes, Carrier Satellite Support for iPhone 13 and More

Monday May 12, 2025 10:06 am PDT by
Apple today released iOS 18.5 and iPadOS 18.5, the fifth updates to the iOS 18 and iPadOS 18 operating systems that came out last September. iOS 18.5 and iPadOS 18.5 come a little over a month after Apple released iOS 18.4 and iPadOS 18.4. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. The iOS 18.5 update has a...
iPhone 12 Made in India

Trump Tells Tim Cook to Stop Building iPhones in India

Thursday May 15, 2025 2:21 am PDT by
President Donald Trump has asked Apple CEO Tim Cook to halt the company's manufacturing expansion in India, in a potential disruption of Apple's plan to shift iPhone production away from China. "I had a little problem with Tim Cook yesterday," Trump said during his state visit to Qatar, according to Bloomberg. "He is building all over India." "They [India] have offered us a deal where...
CarPlay Ultra Climate Controls

Apple Says These Vehicle Brands Plan to Offer All-New CarPlay Ultra

Thursday May 15, 2025 8:13 am PDT by
Apple today announced the launch of CarPlay Ultra, the long-awaited next-generation version of its CarPlay software system for vehicles. CarPlay Ultra features deep integration with a vehicle's instrument cluster and systems, built-in Radio and Climate apps, customizable widgets, and more. The interface is tailored to each vehicle model and automaker's identity, and drivers can also adjust...
apple music

Apple Music Gets New Transfer Tool to Make Switching From Spotify Easier

Wednesday May 14, 2025 5:17 pm PDT by
Apple this week introduced a new feature designed to allow prospective Apple Music users to import their saved music and playlists from third-party music services to Apple Music. The feature is either in an expanded testing phase or it has started rolling out, and it is available in Australia and New Zealand according to an Apple Support document. Signs of the transfer option first surfaced...
maxresdefault

Here's the First Real-World Look at Apple's CarPlay Ultra

Thursday May 15, 2025 5:52 am PDT by
The first videos of Apple's CarPlay Ultra experience are now available, providing a never-before-seen look at the long-anticipated iPhone-linked infotainment software. British automaker Aston Martin today shared the first video of Apple's CarPlay Ultra experience in-action, followed by a detailed walk-through of the CarPlay Ultra system on Top Gear's YouTube channel, which provides the...

Top Rated Comments

bkar89 Avatar
148 months ago
Hear that sound? Thats the death cry of NFC
Score: 4 Votes (Like | Disagree)
cmChimera Avatar
148 months ago
Better yes.

In either case, I'm not sure I trust retailers to implement securely. :/

Starbucks, Neiman, Target, huge numbers of banks all flubbing up.

Considering Starbucks just admitted to storing unencrypted customer data, and Target's Black Friday fiasco, your concern is extremely valid.
Score: 3 Votes (Like | Disagree)
heimo Avatar
148 months ago
I like that Apple is improving their POS technology. :p
Score: 2 Votes (Like | Disagree)
ItWasNotMe Avatar
148 months ago
Hear that sound? Thats the death cry of NFC

On the phone maybe; here in UK you are no longer able to get a bank card from any major bank without NFC built in.
Score: 2 Votes (Like | Disagree)
Menel Avatar
148 months ago
This seems better than NFC implementation. Is that just me?
Better yes.

In either case, I'm not sure I trust retailers to implement securely. :/

Starbucks, Neiman, Target, huge numbers of banks all flubbing up.
Score: 2 Votes (Like | Disagree)
mazz0 Avatar
148 months ago
On the phone maybe; here in UK you are no longer able to get a bank card from any major bank without NFC built in.

Yeah, you can get it on bank cards (although I've never had it on my Natwest ones), but how many shops use it?

Regarding iBeacon or Apple's theoretical proprietary payment system - unless it's made into a standard that anyone can use it's never going to be ubiquitous. Like with iMessage and Facetime - if Apple had made them open standards that anyone could use I would be able to get by with just them, but as it is I have to have Skype as well, and people nag me to get WhatsApp and Viver and other stuff with irritating names.
Score: 1 Votes (Like | Disagree)