iPhone 6 May include NFC for Payments

iPhone 6 may include Near Field Communication (NFC) technology. BrightWire reports that Apple is gearing up to incorporate NFC technology in iPhone 6 for the payments. The report also notes that Apple and China UnionPay and struck a deal to integrate the banking company’s services into Passbook and elsewhere for mobile payments.
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Apple is likely to incorporate a Near Field Communication (NFC) payment function in the next generation iPhone and has reached an agreement with China UnionPay on a mobile payment service, according to a source close to the matter.

…In addition to NFC payment, the two companies will also work together on another mobile payment solution that can be used for purchases in Apple Stores, added the source.

The deal with China UnionPay will allow iPhone users to download the bank cards organization’s app to Passbook, which will enable them to make mobile payments on over 3 million China UnionPay’s “QuickPass” POS machines in China, the source said.

It’ll come as a surprise if Apple integrates NFC into the iPhone 6, as Phil Schiller – company’s head of marketing – had stated that NFC was “not the solution to any current problem.” and that “Passbook does the kinds of things customers need today.” However, there are number of signals pointing towards the possibility of NFC integration in iPhone 6:

Notably, KGI Securities analyst Ming-Chi Kuo who has been a success in the past when he predicted about Apple’s unreleased products, based on his Apple’s supply chain sources, also predicts that Apple would integrate NFC chips into the upcoming iPhone models alongside a host of new features.

Since rumors has it that Apple is pursuing plans to introduce a mobile payment solution, which might be integrated with the Touch ID fingerprint scanner currently found in iPhone 5s and expected to be included in iPhone 6 and upcoming iPad models as well. The company filed for a patent last year, which points to Touch ID scanner and NFC chip both combined into the home button. Apple CEO Tim Cook had also stated during Apple’s Q1 2014 earnings conference call that the company was interested in Touch ID-assisted mobile payments.

Apple is widely rumored to release two models of iPhone 6. A 4.7-inch display model rumored for August launch and a larger 5.5-inch model will follow in September. Other than the larger display, iPhone 6 specs include a thinner profile, A8 processor with 1GB of RAM and an improved camera. iPhone 6 most probably be pre-loaded with iOS 8, Apple’s upcoming major mobile OS update.

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