Apple Predicted to Adopt NFC in iPhone 6 as Core Technology for Mobile Payments System

nfc_logoRumors of Apple incorporating near field communication (NFC) technology into the iPhone have become a yearly ritual, but Morgan Stanley analysts believe that Apple may finally be poised to adopt the technology as part of a push to break open the mobile payments industry. In a recent note to investors, analyst Craig Hettenbach points to possible licensing deals, company financial disclosures and patent filings as the basis for this claim.

Morgan Stanley believes NFC is ready to take off, and Apple could be the force that drives its widespread commercial adoption. Though Apple has been publicly silent on NFC and has in fact pursued alternative technologies such as Wi-Fi and Bluetooth for short-range communication features like AirDrop and iBeacons, there is little doubt the company is exploring this short-range wireless technology. A recent patent application describes a secure, NFC-based wallet that allows customers to make purchases wirelessly through their phone, and Apple is in the process of updating its in-store point-of-sale system with one that supports NFC.

According to Morgan Stanley, Apple is choosing NFC as the key technology for its mobile payments system, with semiconductor company NXP likely providing the necessary wireless hardware. NXP has an existing relationship with Apple, supplying the M7 motion-sensing chip found in the iPhone 5s.

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.

A number of rumors have suggested Apple is actively working on a mobile payments system, with Eddy Cue allegedly approaching retailers about the company's desire to handle payments in retail stores and elsewhere and longtime online store executive Jennifer Bailey shifting role to oversee the payments initiative. While stopping short of confirming mobile payments, CEO Tim Cook also admitted during a recent earnings conference call that mobile payments were "one of the thoughts behind Touch ID."

Morgan Stanley is certainly not the only source to be sharing rumors of NFC support for the iPhone 6, with Brightwire citing its own sources earlier this month and high-profile KGI Securities analyst Ming-Chi Kuo making his own claims last month.

Related Roundup: Apple Pay

Top Rated Comments

(View all)
Avatar
77 months ago
Insert

"Apple will never adopt NFC"
"NFC is dead technology"
"NFC is a fad"



:rolleyes:
Score: 18 Votes (Like | Disagree)
Avatar
77 months ago
NFC? Meh. I prefer AFC.
Score: 12 Votes (Like | Disagree)
Avatar
77 months ago
The only reason for any resentment to NFC on this forum has always been the fact that to admit that NFC is is a good thing is to admit that iPhone is lacking an important feature. The same is true about many other technologies (smaller tablets, larger phones, pressure sensitive pen, OLED displays and even LTE at some point). The silliness never stops.
Score: 7 Votes (Like | Disagree)
Avatar
77 months ago
I'll believe it when I see it, but I really doubt Apple will add NFC after all that they've done with BTLE.
Score: 6 Votes (Like | Disagree)
Avatar
77 months ago

Insert

"Apple will never adopt NFC"
"NFC is dead technology"
"NFC is a fad"



:rolleyes:

Insert "anti fan-boy" fan boy statements here.
Score: 5 Votes (Like | Disagree)
Avatar
77 months ago
So, do I have to bump the iPhone against the cash register in order to pay? :)
Score: 5 Votes (Like | Disagree)

Top Stories

Apple Acquires Weather App Dark Sky

Tuesday March 31, 2020 10:22 am PDT by Juli Clover
Apple has acquired weather app Dark Sky, Dark Sky's developers announced today. Dark Sky is one of the most popular weather apps on the App Store, known for its accuracy and storm warnings. Our goal has always been to provide the world with the best weather information possible, to help as many people as we can stay dry and safe, and to do so in a way that respects your privacy. There is no ...

Seemingly Unreleased Version of Logic Pro X With Live Loops Appears on Apple's Education Site [Updated]

Sunday March 29, 2020 7:23 am PDT by Hartley Charlton
Update: Apple has replaced the Logic Pro X image with an older version. Original story follows. A seemingly unreleased version of Logic Pro X has appeared on Apple's education site, as spotted by a Reddit user. The image from Apple's education products page shows a 16-inch MacBook Pro running Logic Pro X, but with a familiar interface that looks extremely similar to GarageBand's Live Loops ...

Bloomberg: Apple's 5G iPhone Still on Schedule for Fall Launch, But Future Products Could Be Delayed

Monday March 30, 2020 2:40 am PDT by Tim Hardwick
Apple's 5G iPhone is still on track to launch within the company's typical annual fall release schedule, according to a new Bloomberg report on filed on Monday. Signs are that Apple's Chinese-centric manufacturing -- of which Hon Hai is the linchpin -- is slowly getting back on track. The next iPhones with 5G wireless capabilities remain on schedule to launch in the fall, partly because mass...

Case for Upcoming Low-Cost iPhone Shows Up at Best Buy With Alleged April 5 Stock Date

Monday March 30, 2020 4:25 pm PDT by Juli Clover
Apple has a new low-cost iPhone in the works, which is supposed to be launching sometime in the first half of 2020. Given the ongoing situation in the United States and other countries, it's been unclear if the device is going to launch within the planned timeline, but there are signs that it could be coming soon. We started seeing cases for the new low-cost iPhone back in early February,...

Testing Brydge's New Pro+ Keyboard With Trackpad for iPad Pro

Monday March 30, 2020 2:04 pm PDT by Juli Clover
Well ahead of when Apple introduced trackpad support in iOS 13.4, Brydge announced an iPad Pro keyboard with a built-in multi-touch trackpad. We have one of Brydge's new Pro+ keyboards on hand, and thought we'd check it out to see how it works with Apple's new 2020 iPad Pro models. Subscribe to the MacRumors YouTube channel for more videos. The Brydge Pro+ keyboard is similar in design to...

Apple's Work on New Upcoming Products Progressing Normally as Employees Adjust to Telecommuting

Monday March 30, 2020 11:58 am PDT by Juli Clover
Apple's development of upcoming products is progressing as usual despite the fact that Apple employees around the world are working from home, according to a new report today out from Bloomberg. Apple is still working on new versions of the HomePod, Apple TV, MacBook Pro, budget iPads, Apple Watch, iPhone, and iMac, all of which could be released "as early as later this year" and have been...

Apple Releases ProRes RAW Beta for Windows

Monday March 30, 2020 9:33 am PDT by Juli Clover
Apple today released ProRes RAW for Windows in a beta capacity (via Mark Gurman), with the software designed to allow ProRes RAW and ProRes RAW HQ video files to be watched in compatible applications on Windows machines. According to Apple, the software will let the files be played within several Adobe apps: Adobe After Effects (Beta) Adobe Media Encocder (Beta) Adobe Premiere...

2020 iPad Pro Teardown Provides Closer Look at LiDAR Scanner and Confirms Incremental Update

Saturday March 28, 2020 9:56 am PDT by Hartley Charlton
iFixit today shared a video teardown of the new iPad Pro, which Apple unveiled earlier this month. iFixit found that most of the internals of the 2020 iPad Pro are the same as the 2018 model, confirming that the device is a relatively incremental update. The most notable new feature seen inside the new iPad Pro was the LiDAR scanner, which measures the distance to surrounding objects up...

Apple Configurator 2 Updated With New Features, Including Support for Restoring Firmware on 2019 Mac Pro

Tuesday March 31, 2020 5:34 am PDT by Joe Rossignol
Apple Configurator 2 has been updated to version 2.12 with several improvements, including support for restoring firmware on the 2019 Mac Pro. The release notes:• Added support for restoring firmware on the 2019 Mac Pro • Allow access to websites using TLS 1.0 and 1.1 • VPN: Configure Provider Designated Requirement for Custom SSL connection type • VPN: Configure network options for ...

U.S. Government Using Mobile Ad Location Data to Track Compliance With Curbs on Movement

Monday March 30, 2020 4:48 am PDT by Tim Hardwick
The U.S. government is using smartphone location data from the mobile ad industry to track people's movements amid the coronavirus outbreak, according to a Wall Street Journal report. Local governments and the Centers for Disease Control and Prevention have received the anonymized data about people in areas of "geographic interest," with the aim being to create a portal of geolocation...