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Apple Pay may mean the end of physical bank cards within 2-3 years, argues Moven CEO

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While we’d all expected plastic bank cards to be replaced by apps eventually, the CEO of mobile banking startup Moven is suggesting that Apple’s backing could mean the end of physical bank cards within 2-3 years.

The additional sweetners here are three fold. Firstly, tokenization will avoid much of the type of breaches we’ve seen at Target and Home Depot because the token is only a one-time use thing. Secondly, the move to tokens and the combination of biometrics, etc allow for the emergence of a ‘cardholder present’ approach to interchange rates that will potentially give mobile payments a competitive merchant rate. Lastly, the US might effectively jump straight from magstripe to mobile, especially if issuers can figure out how to reduce the cost of card replacement by moving straight to mobile SE and tokens …


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Why Apple timed things perfectly with the launch of Apple Pay

After years of annual rumors that each successive iPhone would feature NFC, there was understandable skepticism when the rumor rolled around again this year for the iPhone 6. It was looking like Apple might have put all its short-range communication eggs in one basket with Bluetooth LE.

Instead, of course, the iPhone 6 and 6 Plus got NFC as the mechanism for Apple’s contactless payment service, Apple PayPando suggests that the company’s timing may not be entire coincidental.

While U.S. banks have so far ignored the more secure chip-and-pin cards used in Europe, sticking doggedly to magnetic strips and signatures, all that will be changing next year. As of October 2015, banks are switching to chip-based cards – and that means merchants will need to upgrade their payment terminals.

You can still get chip-reading terminals without NFC, but it’s likely that the vast majority of stores will opt to go contactless at the same time. Which means that instead of the 220,000 places you can use contactless payment today, there will be much closer to nine million outlets by this time next year – and you’ll be able to pay with your iPhone 6 at any of them.

U.S. card issuers are already pushing Apple Pay, MasterCard running a full-page ad in today’s New York Times (via Business Insider).

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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.

Apple and Disney Stores upgrading iBeacons and NFC scanners ahead of iPhone 6 launch

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Apple and longtime partner Disney this week are bolstering their stores with upgraded versions of iBeacon sensors and NFC readers, according to sources. Apple Stores have had iBeacons stationed throughout showroom floors for several months as a way to pinpoint exactly where a customer is within the store. This allows Apple to better serve customers by providing relevant sales information to their iPhones and iPads while in the store. The upgrades happening this week within Apple Stores place several new Gimbal Series 20 Proximity Beacons across stores to make location tracking within the store even more accurate.

In addition to providing relevant information for the Apple Store app, iBeacons can be useful for NFC mobile payment technologies as a form of authentication. If Apple knows where a customer is in the store to a precise degree, it can ensure that is it wirelessly connecting to the correct iPhone for mobile payments. As has been widely reported, the new iPhone 6 and upcoming Apple wearable device will include new wireless sensors (including a near field communication chipset) to conduct mobile payments with credit cards stored in an upgraded Passbook application.


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NYT: iWatch to feature flexible display panel, wireless charging, iPhone 6 to have ‘one handed mode’

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The New York Times is weighing in on Apple’s imminent iPhone event, corroborating past information as well as adding some new tidbits about Apple’s newest iPhones (the ‘iPhone 6’) and its brand new wearable (dubbed ‘iWatch’).

Most interestingly, it says that the iWatch will feature a flexible display. Assumedly, this will allow the product to morph to fit comfortably on user’s arms. KGI’s Ming-Chi Kuo predicted Apple’s use of a flexible panel in July. The screen is protected by sapphire glass. As 9to5Mac has reported countless times, the device will feature health and fitness tracking capabilities, for things like footsteps and heart rate. The report claims Apple has “put an enormous amount of time and money” to make the sensors track “much more accurately than existing fitness devices”.

In terms of software, the device will rely on HealthKit for health tracking and Handoff, one of Apple’s iOS 8 continuity features, to seamlessly share content between devices. Handoff could be used for sharing SMS texts between the phone and the watch, for instance. 9to5Mac discussed how Handoff might interact with Apple’s wearable a couple of months ago.


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WSJ: iWatch, iPhone 6 to link via NFC, watch coming in two sizes with curved OLED screens

A new report from The Wall Street Journal today is corroborating many previous rumors about Apple’s upcoming wearable, including that the device will include some form of NFC technology and will be shipping in multiple sizes. Furthermore, the report notes that Apple will also be bringing NFC to its next iPhone as seen in previous leaks, making it easier for the two devices to pair and signifying that the watch will be more than just a fitness gadget:

The gadget’s use of near-field communication, or NFC, reflects Apple’s broader ambitions for the so-called iWatch beyond health and fitness tracking, the most commonly cited use. Apple also is expected to add the wireless technology to the next versions of its iPhone, people familiar with the device said, potentially simplifying the process of connecting, or pairing, the two devices.


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Apple reportedly discussing mobile payment partnership with Nordstrom

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Apple is reportedly in talks with department store Nordstrom to join as a partner for the company’s mobile payment system, as noted by Bank Innovation. As has been previously reportedly, Apple is also in talks with several other retailers about the possibility of accepting iPhone-based payments, and has deals in place with MasterCard and American Express as well as Chinese payment processor UnionPay to support the feature.

According to the Bank Innovations report, people familiar with Nordstrom’s systems have confirmed that the company’s current point-of-sale hardware is purchased from Apple and recently received a software update to work “with the latest iPhones.” These devices are said to be the same updated EasyPay systems implemented recently in Apple Stores across the country.


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Claimed production model of iPhone 6 casing shows more subtle Space Gray antenna breaks

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French site NWE claims to have found photos of a finished production model of the casing of the 4.7-inch version of the iPhone 6, shown in gray.

While not revealing anything new about the overall design of the phone, it does appear to give a much clearer view of how the antenna breaks are handled, with a significantly more subtle appearance than had been suggested by some earlier leaked parts, mockups and renders – as seen in the photo below … 
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Apple reportedly working with Dutch company NXP to include NFC in iPhone 6, possibly iWatch

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Apple is reportedly planning to include NFC in the iPhone 6 for secure wireless payments using chips sourced from a Dutch company called XNP, the Financial Times reported today. It’s not the first time this rumor has cropped up before an iPhone launch, but other recent reports seem to indicate that this year it might just be happening.

In fact, earlier this year Apple was said to have reached a deal with China UnionPay, the nation’s only domestic mobile payment processor, to include NFC support at countless retailers in the next iPhone. What’s perhaps even more interesting is that the technology may not be limited solely to the handset itself…


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WIRED now also saying iPhone 6 will have NFC and mobile payments

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WIRED is the latest publication to report that the soon-to-be-announced iPhone 6 will be accompanied by a new mobile payment system using NFC technology.

The company’s next iPhone will feature its own payment platform, sources familiar with the matter told WIRED. In fact, that platform will be one of the hallmark features of the device when it’s unveiled on September 9. We’re told the solution will involve NFC.


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Leaked iPhone 6 schematic doesn’t show 1GB of RAM, but it may indicate NFC on the way

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A set of schematics by GeekBar on Weibo have been making the rounds today, claiming to show both NFC support for the iPhone 6 as well as ‘confirmation’ that the device will feature just 1 GB of RAM, like the iPhone 5s.

Although the site focuses on the 1 GB description at the top of the image, it turns out that the schematic is actually a design for a NAND flash component (a storage chip, the same memory used in iPhones and other mobile devices for storing user data like music and photos) rather than RAM for the SoC.

Todd DeRego, a SoC memory engineer, says that the schematic does not have enough signals for it to be a DRAM interface. He also points out that the AP_TO_NAND text refers to an application processor to NAND link, indicating this memory is actually used as a way of storing the booting firmware and not the main memory of the iPhone. Although the RAM claim is almost certainly untrue, the NFC claim cannot be so easily dismissed.


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Rumor: NFC, wireless charging, improved LTE slated for iPhone 6

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New high-resolution photos surfaced over the weekend showing what is expected to be the much thinner iPhone 6 following a report from Venture Beat that corroborates several other claims that the next generation iPhone will feature a larger display than previous models. Included in that report are also claims that Apple will opt for implementing NFC (near field communication), wireless charging, and improved LTE in the next iPhone refresh expected later this year…


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Analyst: Apple has reached deal with China UnionPay, could include NFC in iPhone 6

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According to Shanghai Mobile analyst Frank Hill, Apple has reached a deal with mobile payment provider China UnionPay that would enable the next iPhone to make purchases at millions of supported Chinese point-of-sale devices. This would work in conjunction with NFC hardware said to be included in the next iPhone model.

UnionPay works with many of China’s major banks, and is the only domestic mobile payment company operating in the country. Several banks have reportedly been invited by UnionPay to participate in the development of a new system that is compatible with iOS devices.

While rumors of NFC in the iPhone have been relatively rare compared to some previous upgrade cycles, this isn’t the first time this year we’ve seen mentions of the technology finally making its way into Apple’s smartphone. Last month a report from analyst Ming-Chi Kuo indicated that we’d see near-field communication in the upcoming device.


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Incipio’s NFC-enabled iPhone case for ISIS payments now available to Verizon customers

First launched by AT&T at the end of last month, Verizon announced today that it too will be selling Incipio’s Cashwrap iPhone case that builds in an NFC chip for using the ISIS mobile wallet service. The Google Wallet competitor was previously only available to Android users and is backed by a number of major mobile carriers and credit card companies. It’s supported at around 200k contactless payment locations in the US so far and, like Google’s Wallet app, also supports loyalty reward programs. To go with the case, the ISIS Mobile Wallet for Verizon app is also now available on the App Store.

To celebrate the national launch of the new Isis Mobile Wallet, Verizon Wireless customers will receive $10 when they download Isis Mobile Wallet and activate a new American Express Serve Account, as well as an additional $10 after their first tap-to-pay transaction at a Verizon Wireless location.

The Incipio Cashwrap ($69) is available now through Verizon for iPhone 4, 4S, 5, and 5s in Black and requires the ISIS mobile app for Verizon from the App Store. It’s also available in several other colors for the same price through AT&T.

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PayPal feels the threat from Apple’s mobile payment plans, says it ‘wants to help’

PayPal is clearly feeling the threat posed by Apple’s plans to use Touch ID to facilitate payment for physical goods from other retailers: re/code is reporting that the company has offered to help.

PayPal is essentially willing to white label parts of its payment service to be used in an Apple mobile payments system — anything from fraud detection to back-end infrastructure, even possibly down to the processing of payments.

“They’re telling them, ‘We’ll do it in the background,” one of these people said. “Basically, it’s just, ‘We want to be a part of this.’”

The plea is likely as desperate as it sounds, with two of the three payment industry execs re/code spoke to saying it’s unlikely Apple has any need of PayPal’s assistance. Apple has over 575 million iTunes accounts, most linked to credit cards, and already allows purchases from its own retail stores using the Apple Store app on iPhones. Apple also has patents in place for payment via both NFC and Bluetooth electronic wallet systems, so there doesn’t appear to be any part of the process the company couldn’t handle unaided.

PayPal’s relationship with Apple seems set to remain limited to that of a payment option for iTunes and online store purchases, and a reseller of iTunes gift cards.

Tim Cook as good as confirms mobile payment via Touch ID on the way

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When Touch ID was first rumored, there had been much speculation about whether the iPhone 5s would act as an electronic wallet, with payments to retailers authorized by fingerprint. While that hasn’t yet happened, it does now seem clear that it’s on the way.

Asked about mobile payments during yesterday’s earnings call, CEO Tim Cook gave what is, in Apple terms, a surprisingly direct response.

The mobile payments area in general is one we’ve been intrigued with. It was one of the thoughts behind Touch ID […] it’s a big opportunity … 
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Apple keeps its options open with patent for iBeacon- & NFC-compatible secure payment system

While it seems likely that Apple is intending to eventually establish iBeacon as a wireless electronic wallet system, rather than the existing NFC system commonly used in parts of Europe and Asia, a patent filing published today incorporates both protocols. It also allows for other forms of Bluetooth payment.

The secure payment system Apple describes would work in much the same way as the chip-and-PIN cards which are well-established in Europe. Instead of transmitting your actual card details to the payment terminal, the card details are used to generate an encrypted code which is sent instead. The terminal is able to validate the code and identify the account without ever having access to the card details themselves.

As we always note with patent stories, Apple patents huge numbers of things, most of which never make it into products. But while Apple is adopting its usual wait-and-see policy where new technologies are concerned, the question of using iPhones for payment is almost certainly when and how rather than if.

CES 2014: Smart thermostat EverSense shows off ‘Aura’ iBeacons to intelligently adjust room temperature

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This week at CES 2014, Allure Energy, makers of a $400 smart thermostat Nest competitor called EverSense, showed off an upcoming add-on to its system that uses Apple’s new Bluetooth LE iBeacon technology. Dubbed “Aura,” the small iBeacons will become an extension to the smart EverSense thermostat by allowing iBeacons to detect iOS devices in proximity and adjust the temperature of a room accordingly. After an initial setup, you’ll be able to adjust the temperature from any room with an Aura iBeacon just by entering the room:
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Apple hiring developers for next gen payment platform to help retail ‘enter new markets’

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Apple today posted a job listing on its website looking for a Payments Software Engineer that will “help build a next generation payment platform.” Apple says the payment system will consist of integration of payment devices, middleware and acquirers that will “push the boundaries in new markets for Apple Retail.”
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Opinion: Why I love the iPhone 5s, and why I’ll be sticking with my 4S

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I like my gadgets, and generally consider myself an early adopter. When my friends are looking at buying a new piece of technology, I’m the one they ask as they know I’ll either own it or have tried it.

So you might be surprised to learn that my phone is an iPhone 4S and that after yesterday’s unveiling of the 5s (no, I don’t know why it suddenly became lower-case either), I’m planning to wait for the iPhone 6 before upgrading.

It’s not that the 5s isn’t impressive from a purely technological viewpoint. It is. A 64-bit phone? That’s a pretty incredible achievement. Delegating sensor functions to a separate chip to enable constant use without the usual battery-drain? Brilliant. A truly state-of-the-art fingerprint sensor? Fantastic. A larger phone sensor with lower pixel-density? Exactly the right approach, and I was delighted to see Apple refusing to join in the stupid megapixel race.

But I’m still not going to buy one, and the reason for that is two-fold. Before I get to that, one piece of context. In the U.S., upgrading can be a no-brainer as you end up on the same tariff either way. In the UK, it’s better value long-term to buy the phone outright at full retail (around $1120 for the 64Gb 5s), so you have to balance incremental benefit over other gadgets you could buy with the same money – like a new iPad. So, back to those two reasons …
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New quick app switching & other concepts show options on the table for iOS 7 [Videos]

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With the recent departure of longtime iOS chief Scott Forstall, many expect some big changes in iOS 7. Not only is Jony Ive taking over design responsibilities related to iOS, but also Apple is increasingly coming under criticism for its aging core iOS apps and highly requested features already available on other platforms that it has yet to implement. We discussed some of the big software features iOS 7 might have in store, but today we present a roundup of the best iOS 7 concepts we could find starting with a new one from the creator of jailbreak tweak Auxo.

Sentry, the original designer behind the popular Auxo jailbreak tweak, yesterday posted the new Quick App Switching concept above (via iFun). While Auxo provided a screenshot of running apps integrated into the iOS multitasking tray, the concept above takes a different approach and aims to add speed to the app switching process.

This next concept comes from YouTube user imjeanmarc and shows a tray accessible from the lock screen, providing quick toggles for Bluetooth, Wi-Fi, etc.:


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