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Apple reportedly planning to implement tokenization in NFC payment system

We may finally have a reason for why Apple Stores and some other stores are installing new NFC payment hardware ahead of the iPhone 6 launch. Apple is reportedly planning on implementing a security feature called tokenzation in the system, which removes the necessity to transmit account numbers or other critical personal details wirelessly (via Bank Innovation).

This tokenization system employs secure codes become useless after being used once. That boosts security by ensuring that any information captured by nefarious third-parties doesn’t give them access to your account or money. However, not all NFC payment terminals can accept this type of payment.

In order to support the iPhone 6, stores will need to upgrade to point-of-sale systems that will function with these tokens. That’s likely why Apple has upgraded its in-store systems and McDonald’s restaurants are receiving new terminals for rollout around the time of the device’s launch despite some stores already supporting NFC payments, while a few other retailers rumored to be on board with Apple’s system are installing NFC terminals for the first time.

Apple will debut on the next iPhone on Tuesday, alongside a wearable device that is also rumored to support NFC payments.

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Comments

  1. taoprophet420 - 10 years ago

    It’s not just about payments. It’s going to be a way to securely link to your security system, doorknob locks, between iOS devices, your airplay car and many other things. Apple has been looking at this for many years and has tons of patents related to NFC, a wallet app, and sharing data between devices.

    Apple doesn’t do things without putting lots of thoughts into it and seeing a technology is mature enough before it enters that market.

    • o0smoothies0o - 10 years ago

      I’m extremely confident that a major feature of the iWatch will be a virtual key which unlocks and locks all of your devices and smart locks/doors etc, based on proximity. I like to think of it as an invisible aura around the user. You walk up to your iPhone, Mac, or door, and they unlock before you touch them, and lock as you move a few feet away. It will making locking and unlocking things invisible and seamless for the wearer. Touch ID authenticates it each time you put it on your wrist, and it knows when you take it off your wrist through sensors. So it will be constantly unlocked and authenticated on your wrist, and constantly locked off your wrist.

      • rahhbriley - 10 years ago

        Cool…but surely there’s another biometric sensor other than the Touch ID’s to authenticate who’s wearing the device.

      • taoprophet420 - 10 years ago

        They could use accelerometers to monitor your gait or sensors they tack heart activity.

        I more see NFC being the way to verify your witch. It’s simple secure and requires you to buy a new iPhone for the new iWatch.

      • diososx - 10 years ago

        Sounds nice…but what about running out of battery? I hope the system is robust and well design so it’s not standing on the lifetime of a device.

      • danzaph - 10 years ago

        NFC is very low power. With cards the chip on the card receives it’s power from the terminal via the RF signal.

    • Brian Pex - 10 years ago

      Exactly.. Unlike SAMSUNG that introduces tech that has no practical use other than to say “Oh wow” before realizing 10 mins later that the feature is useless.. lol.. Apple #1

  2. taoprophet420 - 10 years ago

    NFC tokens will be a secure way of doing continuity or handoff. I can see it being used for basically all Apple products.

    Put an NFC in your car’s head unit and start your car and link your iPhone or iWatch.

    To see NFC tokens as just for payments is naive.

  3. Dan (@danmdan) - 10 years ago

    Probably in the US only, since many other Countries simply do not have anything more than credit card terminals, if they have any way to accept other than cash, (or chickens, or a goat !)

    • Dave Huntley - 10 years ago

      Well I hate out to point on reality, but NFS, chip/pin, NFC and other means of payments are far more advanced than the US in many other countries, in developed Europe, in Japan they were swiping phones and cards 10 years ago +

      The Tokyo subway system is a great example. various phones support the Suica payment system and users walk through a barrier or wave their phone in a certain area.

      It may not be the same system, but it is the same principle. so don’t kid yourself on US only anything.

    • Richard Anderson - 10 years ago

      The US (from my understand) is behind Europe and alike for things like mobile/card payments. In the UK we have had chip and pin for years, likewise with NFC but it hasn’t really taken of. I remember reading an article on here about chip and pin being used in the US but in Europe it’s well established. I haven’t written a cheque in forever or had to sign for years.

      I think with the new iphone and using mobile payments, it will really give everything a big push worldwide. It will benefit apple obviously but likewise for companies like Samsung who have NFC but hasn’t really appealed to the masses.

      • Zaph - 10 years ago

        Chip and PIN is not coming to the US, only Chip and Signature. I have already received Chip and Signature cards from US banks, the PIN on US cards is only to use for cash withdrawals, not purchases, it will not work in Europe as a Chip and PIN. I also have a real Chip and PIN card for Europe.

    • PMZanetti - 10 years ago

      The US likewise still has very little infrastructure for NFC, despite what some people like to pretend.

      Put it mildly, you’ll still need to carry a wallet until long past iPhone 10.

    • itsjtire - 10 years ago

      Here in Europe is way ahead when I comes to using NFC and wireless card payments, most of our transport it’s wireless, and nearly all shops here in ireland anyway have contactless payment. The Oyster card in London is wireless contact for transport and you can also use you credit card now. We also have the most company’s making wireless blocking wallets so you don’t get charged unexpectedly. Living in NYC for the summer just gone I was so suprised even the subway didn’t have wireless contact, still using swipe paper cards. Educate yourself before making a silly comment about other countries, Sorry to tell you but USA is far behind on quite a few things when I comes to Europe.

  4. moofer1972 - 10 years ago

    Can you please proofread before you post? Why should I take the time if you don’t?

    • Travis Peterson - 10 years ago

      Can you please be more understanding of a news blog? Blog posts don’t need to be perfect but they do need to be fast. I agree we can all have better grammar but blogs are like text messages to me, fast and furious. Fixes come after.