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

Dave.UK Avatar
116 months ago
Insert

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



:rolleyes:
Score: 18 Votes (Like | Disagree)
macduke Avatar
116 months ago
NFC? Meh. I prefer AFC.
Score: 12 Votes (Like | Disagree)
lilo777 Avatar
116 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)
TellowKrinkle Avatar
116 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)
linuxcooldude Avatar
116 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)
Taipan Avatar
116 months ago
So, do I have to bump the iPhone against the cash register in order to pay? :)
Score: 5 Votes (Like | Disagree)

Popular Stories

iPhone 15 Pro Buttons CAD Leak

iPhone 15 Pro Low-Energy Chip to Allow Solid-State Buttons to Work When Device is Off or Out of Battery

Wednesday March 29, 2023 1:54 am PDT by
The iPhone 15 Pro and Pro Max will use a new ultra-low energy microprocessor allowing certain features like the new capacitive solid-state buttons to remain functional even when the handset is powered off or the battery has run out, according to a source that shared details on the MacRumors forums. CAD-based render of new solid-state buttons on iPhone 15 Pro models The source of this rumor is ...
maxresdefault

Apple Announces WWDC 2023 Event Taking Place June 5 to 9

Wednesday March 29, 2023 9:58 am PDT by
Apple today announced that its 34th annual Worldwide Developers Conference will take place from Monday, June 5 to Friday, June 9. Like WWDC 2020, 2021, and 2022, WWDC 2023 will be an online event for the most part, and it will be open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. Apple will provide online sessions and labs, which will allow...
iPhone 15 Pro Multi Purpose button Mute Switch Feature Green 2

iPhone 15 Pro Rumored to Feature Multi-Use Action Button Instead of Mute Switch

Wednesday March 29, 2023 7:28 am PDT by
iPhone 15 Pro and iPhone 15 Pro Max models are rumored to feature a customizable Action button like the Apple Watch Ultra, according to a MacRumors forum member who leaked accurate details about the Dynamic Island on iPhone 14 Pro models last year. The source claimed the Action button will replace the Ring/Silent switch that has been included on every iPhone model since 2007. They did not...
iOS 16

Apple Releases iOS 16.4 With New Emoji, Safari Web Push Notifications, Beta Changes, Voice Isolation for Calls and More

Monday March 27, 2023 10:03 am PDT by
Apple today released iOS 16.4, the fourth major update to the iOS 16 operating system that initially came out last September. iOS 16.4 comes two months after the launch of iOS 16.3, an update that added Security Keys for Apple ID. iOS 16‌.4 and iPadOS 16.4 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. It can take a few minutes...
Apple Music Classical

Apple Explains Why It Launched an iPhone App Dedicated to Classical Music

Monday March 27, 2023 8:54 pm PDT by
Apple today published a support document explaining why it decided to release a standalone Apple Music Classical app for classical music. In short, Apple says the app was designed to support classical music's complex metadata:Classical music is different. It has longer and more detailed titles, multiple artists for each work, and hundreds of recordings of well-known pieces. The Apple Music...
iOS 16

Apple Seeds First Betas of iOS 16.5 and iPadOS 16.5

Tuesday March 28, 2023 10:15 am PDT by
Apple today seeded the first betas of upcoming iOS 16.5 and iPadOS 16.5 updates to developers for testing purposes, with the software coming a day after the launch of iOS 16.4 and iPadOS 16.4. Registered developers can opt in to the betas by opening up the Settings app, going to Software Update, tapping on the "Beta Updates" option and toggling on the iOS 16 Developer Beta. Note that an...
home upgrade available feature

PSA: Apple Has Made Its New Home Architecture Update Available Again

Tuesday March 28, 2023 1:50 am PDT by
Apple has made the option to upgrade to new Home architecture available again with the release of iOS 16.4, iPadOS 16.4, and macOS Ventura 13.3, after it temporarily pulled the update in December. After updating Apple devices to the latest software, users can once again opt to upgrade any homes set up in the Home app to the new Home architecture, which Apple says brings faster, more reliable ...