iPhone, iPad to Get NFC Technology!

Imagine how convenient it’ll be to make payments at restaurants or stores with your iPhone or iPad! Imagine how great it’ll be to have a fast checkout process and not have to wait in line. According to Bloomberg’s report, Apple’s next iPhone and iPad are expected to have NFC technology.

NFC technology (near field communication) that is gaining popularity, allows various forms of data transfer between the iPhone and other NFC capable devices. NFC technology receives and sends out information at distances up to 4 inches. This means iPhone and iPad users will soon be able to make payments using NFC.

The key to this is iTunes, or better say the payment system within iTunes that is already in use by millions and millions of people around the world. By entering the payment service market, Apple has a massive opportunity. By including NFC into its iPhone and iPad, Apple could use its existing iTunes accounts and give consumers an alternative to traditional financial services by Visa, MasterCard and PayPal.

Right now, Apple has launched a prototype for the payment services by allowing smaller businesses to scan NFC-enabled devices.  Upcoming versions of the AT&T iPhone and iPad 2 are expected to have the technology enabled and the technology is anticipated to be available by mid 2011.

If Apple can nail NFC and tie it directly into their iTunes payment system, it could change everything. This can be an evolution of the payment system within iTunes.

This could be the greatest tactic they’ve ever pulled. Is it possible that Apple and iTunes will replace Visa and Mastercard? From our perspective, it seems unlikely that they will go that far due to the complications and the financial burden associated with giving consumers credit.  But I guess we will never know how far they will go and we will just have to wait and see!