Dutch chip maker NXP will supply Apply with near field communication (NFC) technology that could enable smartphone payments in the next iPhone, according to the FT.
The partnership means phone users will be able to conduct transactions by tapping the device on payment terminals, as well as paving the way for other ‘Internet of Things’ applications, the sources said.
Despite a number of smartphone vendors including NFC chips in their handsets, such as Apple’s main rival Samsung, the market for mobile payments is yet to take off in a significant way. NFC chips are already prevalent in debit cards over here, where payments can be processed to a value of €15.
Apple, which is preparing to launch the latest version of its phone in September, is considered to be in a good position to drive adoption of mobile payments.
It already holds card details for 800 million customer details through iTunes and the App Store, and is believed to be developing its capabilities to handle payments for physical goods.
Apple CEO Tim Cook said earlier this year that mobile payments could be the next “big thing” for the firm, with reports that the company is working on a service to rival Google Wallet and PayPal.
IDG News Service
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