Apple reportedly taps chipmaker NXP for 'iPhone 6' NFC solution

Adding to the pile of rumors suggesting NFC hardware will be built into the next iPhone, a report on Friday narrows down the as-yet-unannounced component's source to Dutch chipmaker NXP, the same firm that supplies Apple with the M7 coprocessor.

Citing people familiar with Apple's plans, the Financial Times reports the company has been working with NXP on contactless mobile payment system based on near-field communication technology, possibly tied to users' iTunes accounts. According to hardware analysis firm Chipworks, NXP already has a significant presence in Apple's iOS device lineup as the Dutch chipmaker supplies the iPhone 5s' M7 motion coprocessor.

With the rumored system in place, iPhone owners would be able to store credit card and other payment information locally and simply tap the handset against compatible point of sale terminals. As credit card theft still a major problem around the world, companies like Visa and Mastercard are moving toward more secure solutions, specifically chip-and-PIN POS systems — which happen to include support for certain NFC-based standards — that should roll out across their respective networks by October 2015, the report says.

Apple holds a number of patents relating to NFC payments solutions and the company has long been rumored to be looking to introduce such capability in its iOS device lineup. On Thursday, a pair of reports claimed the iPhone 6 would be the first Apple device to sport an NFC chip, to be leveraged for digital wallet purposes.

It remains unclear if Apple's mobile payments plans will rely solely on NFC, though such a scenario seems unlikely given that its massive installed iOS device user base would be left out unless they upgrade to new hardware. Successfully introducing a new form of payment means wide adoption consumer adoption. One possible stopgap could be a hybrid setup using either on-board NFC or, if the user does not own a new iPhone, a combination of Bluetooth Low Energy and wireless data.

Along with digital wallet capabilities, today's report claims NXP's chip may also be used to bolster the next-generation iPhone's compatibility with the so-called "internet of things," a catchall phrase describing connected devices like health trackers to app-powered home appliances. The forthcoming iOS 8 mobile operating system bound for Apple's "iPhone 6" does include a powerful framework for smart home products called HomeKit, which could theoretically support NFC-equipped products.

Apple is expected to announce its new iPhone lineup at a special event on Sept. 9, which according to multiple reports will also include the unveiling of an "iWatch" wearable device. AppleInsider will offering live on-site coverage of the event next week.

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33 Comments

tallest skil 43086 comments · 14 Years

About 10 years ago

Oh, good. We have a manufacturer for the thing that was made up a week ago.

Not that I figure Apple doesn’t have a payment thing they’re designing.

henryblackman 58 comments · 20 Years

This is going to be very interesting - Visa/Mastercard/Amex (etc) have long since rolled out Chip and PIN globally except in the USA more than a decade ago. I'm in Europe and don't remember the last time I signed for something outside of the states. Chip and PIN does not include any kind of NFC specification, however many banks are now including 'contactless' as part of their credit and debit cards over here, and perhaps 20% of shops have a contactless terminal. If Apple is supporting *that* standard, the banks still have to allow them to, which does appear to be increasingly likely with something that would be very much more secure than Android. If WinPhone followed suit, then we may have a shot, given it's popularity in Europe on the low end (aka. Teens and younger folks).

konqerror 685 comments · 12 Years

Quote:

Originally Posted by henryblackman

Chip and PIN does not include any kind of NFC specification, however many banks are now including 'contactless' as part of their credit and debit cards over here, and perhaps 20% of shops have a contactless terminal.

Contactless is the exact same as the chip system. It's technically called EMV Contactless and operates with the same protocol and infrastructure. The US has had contactless since 2005. Most AMEX cards have it since then, and places like McDonald's and 7-11 have the terminals. Visa laid out significant incentives for merchants to install them and every new chip reader I've seen here also has contactless. This is exactly why Apple stands no chance making their own payment method.

I predict the US will basically skip over the hassle of a chip and go straight to contactless.

wonkothesane 1737 comments · 12 Years

I'm not deep into these technologies. I just have a hard time imagining apple comes up with something that would require heavy hard ware investments from shop owners and/or banks. They would rather try to use existing tech and make it work in a way that's more easy than current approaches. That could imply not needing to carry the cards themselves. Not having to sign. Not having to enter a pin. And maybe not having to take out the phone for the ones that wear the wearable to be announced.

applesauce007 1702 comments · 17 Years

TouchID with Secure enclave plus iBeacon will be central to the whole iOS security system.

TouchID secured NFC will be a secondary authentication method for backwards compatibility.

iBeacon technology + TouchID authentication will be a much more seamless security system.

It will be used for everything from payments to secured area access to alarm systems to ignition systems to a variety of authorizing systems in HomeKit and HealthKit.

Time will tell.