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Source: NFC chip in new iPads just the Secure Element for Apple Pay

NFC-iPad-Air-2-green-01Teardowns of Apple’s new iPad Air 2 revealed an NFC chip that wasn’t officially announced by Apple, but sources close to the situation have confirmed it’s only being used as a Secure Element for Apple Pay in-app purchases.

Apple describes the Secure Element on its website, which is used to securely store account numbers associated with credit cards for Apple Pay on both the iPad Air 2 and iPad mini 3, according to our source: With Apple Pay, instead of using your actual credit and debit card numbers when you add your card to Passbook, a unique Device Account Number is assigned, encrypted, and securely stored in the Secure Element, a dedicated chip in iPhone. These numbers are never stored on Apple servers. And when you make a purchase, the Device Account Number, along with a transaction-specific dynamic security code, is used to process your payment. So your actual credit or debit card numbers are never shared by Apple with merchants or transmitted with payment.

Following a teardown of the iPad Air 2 (and iPad mini 3) revealing an NFC module similar to that present in the new iPhone 6 and 6 Plus, some speculated Apple could have future plans for the component that wasn’t officially announced as included in the new tablet. Some theorized that the NFC chip might be capable of allowing the new iPads to act as NFC-based terminals for receiving Apple Pay payments, for example.

While Apple Pay, Apple’s new payment service, is available for in-app purchases on the Touch ID-equipped iPad Air 2, the device isn’t capable of making contactless payments at NFC terminals like the new iPhones. The iPad Air 2 lacks NFC antennas included in the iPhones, and we now know the NFC chip found inside is only being used as a Secure Element for Apple Pay purchases in apps. In addition to the lack of an NFC antenna, iLounge points out that Apple didn’t seek certification for NFC functionality for iPad Air 2 with the FCC, something it would have been required to do for wireless communications.

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Comments

  1. rtd5943 - 9 years ago

    I am really surprised Apple didn’t unclude the NFC antennae. Not that customers would be using iPad for payments, but it would be an easy way for Apple to get their foot in at small/medium sized businesses. The reason is a lot of small businesses are slowly migrating to iPad based point of sales. Which if they used the new iPad ApplePay would work out of the box.

  2. webzpinner - 9 years ago

    Well, I went from “no NFC, no purchase by me” to “wow! Yay, I’m gonna go ahead and upgrade, it’s worth it!” Back to “meh… I’ll wait for iPad Air 3.”

  3. Mr. Grey (@mister_grey) - 9 years ago

    Question: Does anyone with good knowledge of how this hardware works know if this means that the iPads will work in conjunction with the Watch next year?

    I for one intend to get the Watch, and I would like it to work with my iPads. I won’t necessarily be carrying phone always, but I will always be carrying the iPad. The Watch has an NFC antenna, no?

    • Toro Volt (@torovolt) - 9 years ago

      Most likely the aWatch will use Bluetooth to link to the iPad/iPhone.
      I’m currently using a Pebble watch and that is how it works, Bluetooth 4.0 LE

    • Anıl Utkulu - 9 years ago

      device will need passbook app to make purchases with apple watch connection.So iPad iOS has not any passbook and right now can not connect & use apple watch for payments.

  4. Toro Volt (@torovolt) - 9 years ago

    My iPad mini is my “phone”, so I carry it anywhere. This gives me another reason to NO upgrade to a Mini3 on top of the lack of a LED light. Is Apple seriously interested in promoting Apple Pay and selling iPads? The NFC for payments should have been part of the Mini3, is really a cheap part.

  5. Kristopher McLachlan - 9 years ago

    Could someone (smarter than me) explain why a NFC chip would be needed for in-app purchases? Are these purchases made at a physical store via the store’s iTunes app?

    • I have no knowledge of the technology involved but reading above (2nd paragraph), I understand it as a kind of vault for your credit card info, an additional barrier between that sensitive info and the OS and instead of giving out your info when making a payment, the nfc chip just pings and says good to go or deny.

      • now if someone actually smarter would help us out…

      • Nic Lyon - 6 years ago

        NFC chips are not just little radios that allow your phones and tablets to communicate wirelessly to tap to pay compatible payment terminals, I mean yes they do, do that, but that’s not all they can do… an NFC chip is basically a miniature computer inside your handheld computer that can run independently and thus if your phone or tablet (regardless of OS or brand) is compromised in any way, that doe not affect the NFC chip, cuz it is it’s own little computer all by itself. It can store data, do encryption, create tables of tokens, talk to your device’s OS send and receive wireless data, and much more, so in the case of in-app purchasing its the computer that gives the app a token or basically a code that can be used to represent your payment card for one transaction… in short an NFC chip is ‘needed’ for in-app purchases for security purposes. so yes it’s like a volt for your credit card info … it’s just also capable of slipping a vendor $23.47… provided it has its antennae that is.

    • Fallenjt JT - 9 years ago

      It will work with future detachable antenna…lol. Apple will sell an adhesive antenna strip to stick on the device and here you’ll have full NFC capability of Apple Pay for in-store usage…

    • Fallenjt JT - 9 years ago

      It’s a joke but I believe with the “future” component/accessory to be used with the new iPad, this NFC chip might be capable of allowing the new iPads to act as NFC-based terminals for receiving Apple Pay payments

    • Trent Lloyd - 9 years ago

      The “Secure Element” is a separate independent piece of hardware inside the device that is performing the credit card transactions. This way even fi the phone is hacked, they can’t get your card details out.

      So they need it to be able to store the appropriate card data securely on the device.

Author

Avatar for Jordan Kahn Jordan Kahn

Jordan writes about all things Apple as Senior Editor of 9to5Mac, & contributes to 9to5Google, 9to5Toys, & Electrek.co. He also co-authors 9to5Mac’s Logic Pros series.