Apple Inc. (NASDAQ:AAPL) reportedly partners with Dutch chipmaker, NXP Semiconductors NV (NASDAQ:NXPI) to supply near field communication (NFC) hardware for its iPhone 6. The company aims to add secure, short-range wireless technology into its future iPhones, which means that the company is preparing to launch a mobile payment system.
With this technology, iPhone owners will have the ability to store credit card and other payment information on their device and simply tap their smartphone against compatible point-of-sale machines. As credit card theft is still a concern, credit card companies like Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA) are targeting for more secured solutions, which the NFC technology stands at the forefront.
Apple Inc. (NASDAQ:AAPL) wishes to leverage its trove of credit card data from its base of iTunes users that have been using touch-to-pay technologies through third-party apps for years.
Google Inc. (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT) have reportedly tried to use NFC technology for mobile payment. Microsoft Corporation (NASDAQ:MSFT) has a project called Zero-Effort-Payment, which integrates Bluetooth and its face recognition technology that can be used with NFC. Google Wallet, is likewise the same service from Google Inc. (NASDAQ:GOOGL), which can use NFC technology to make secure payments by just simply tapping your smartphone to any PayPass-enabled terminal. But the adoption of this touch-to-pay market is moving at a snail’s pace. This is partly due to the fact that many retailers today still aren’t equipped with NFC capabilities.
Chips sourced from NXP Semiconductors NV (NASDAQ:NXPI) may also be used to support the bid of Apple Inc. (NASDAQ:AAPL) to the Internet-of-Things. Currently, Apple Inc. (NASDAQ:AAPL) and NXP Semiconductors NV (NASDAQ:NXPI) have supply agreements in place for the M7 coprocessor.
NXP Semiconductors NV (NASDAQ:NXPI) is an electronics company originating from the Netherlands. They create solutions for customers in various areas such as the connected car, cyber security, portable and wearable devices and the Internet-of-Things.
This article has been written by John Aquino.