Apple taps NXP to develop pay-by-touch tech for next iPhone

Apple taps NXP to develop pay-by-touch tech for next iPhone

Summary: Apple is reportedly working with the Dutch chipmaker to add NFC support to the tech giant's new flagship smartphone.

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Credit: Apple

Apple is working with Dutch chipmaker NXP Semiconductors NV to include pay-by-touch technology within the next iPhone range.

The tech giant is planning to add secure near-field communications (NFC) technology to the new iPhone, which will allow users to pay for items by touch, according to the Financial Times (subscription required). Citing people familiar with the matter, the publication says that NXP will provide the chips required to support the short-range wireless technology, and this will allow an iPhone to connect to payment terminals or ticketing systems wirelessly.

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In addition to NFC payments, partnership with the Dutch chip maker will also open up future opportunities for the Internet of Things (IoT), the sources say.

NFC technology allows devices to communicate wirelessly with other devices when tapped together, and this can be used not only to transfer files, but also make wireless payments.

While NFC payment terminals are often seen in Europe -- and chip-and-PIN payments are standard -- the United States still often relies on swiping and signing. If the next generation of iPhones are equipped with NFC, it may come at the right time as card providers including Visa begin the switch to chip-and-PIN in the US, and business cashier terminals will likely be upgraded across the country in the next few years as a result.

On Thursday, the iPad and iPhone maker sent out invitations for a media event in Cupertino, California on 9 September. Apple is expected to announce the company's latest flagship phone -- dubbed the iPhone 6 for lack of a better name -- and potentially a wearable device, such as a smart watch.

Topics: Mobility, Apple, iOS, iPhone, iPad, Innovation

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6 comments
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  • Oh Holy Yay!

    September 9th is going to be a conceptual release setting the stage for the Boxing Day arrival of the physical iPhone 6.

    Delivery of the 6 has already been delayed by Apples attempt to squeeze a few more Sheckles out of the flock by going cheap on the screen.

    In an attempt to catch up to the competition by including NFC, Apple will undoubtedly try to go the cheap route again and end up with what could be their final fiasco - consumers will only put up with being fooled with fluff for so long.

    This may well be the iPhones last chance to remain relevant.
    Mujibahr
    • Maybe it is different outside the US

      NFC doesn't exist yet in the US for all practical purposes. 98% of all locations do not support it. I'm sure more would, had Apple jumped onto the bandwagon earlier (if infact they plan to jump on this time). But it is hard to argue that we need another wireless technology in our phones until adoption increases. It looked/looks like Bluetooth LE and barcode readers had/have a much better chance of taking off.

      As for Delays and relevancy? This is the exact day you would have guessed apple would announce based on last years announcement so no delays appear to be in effect and certainly nothing that you could confirm some sort of low quality component/cost savings trick on. And if by relevant you mean will they continue to make the most successful smartphone on earth? I'd say it is likely.

      Prediction:
      1) iPhone 6 will be the fastest benchmarking phone on the planet.
      2) iPhone 6 will have the fastest real world performance for every cross platform app available
      3) iPhone 6 will have the fastest web surfing speeds of any mobile device
      4) iPhone 6 will have one of the best cameras ever in a smart phone (subjective, not highest MPixel)
      5) iPhone 6 will have one of the best screens ever in a smart phone (subjective, again not highest res)
      5) iPhone 6 will have the best build quality of any smartphone
      6) iPhone 6 will break all sales records for smart phones

      There is never anything magical about the new iPhone, it just happens to be arguably the best smart phone that exists at the time it ships. But maybe they can fool me longer than you think.
      DougPetrosky
  • Finally?

    So the iPhone will finally get the NFC payment capability that most other devices have had for the last few years?

    Or will it be a proprietary system that isn't compatible with all of the terminals already in use from banks and Visa/Mastercard in Europe?

    I love the NFC on my Windows Phone and Android devices, I use it with a Yubikey to keep my LastPass app secured - it needs the password / PIN + the Yubikey OTP to unencrypt the data.
    wright_is
    • iPhone purchasing

      I would expect the iPhone to use biometric authentication, which is really quick and painless.

      It's so painless, in fact, that I've lengthened my passcode substantially since I only need to use it when I power down the phone or my hands are wet.
      varase
    • iPhone purchasing

      I would expect the iPhone to use biometric authentication, which is really quick and painless.

      It's so painless, in fact, that I've lengthened my passcode substantially since I only need to use it when I power down the phone or my hands are wet.
      varase
  • iphone NFC

    Apple just wants a cut of NFC payments and nobody was willing to play with them until now.
    welcome to 2 years ago.
    warboat