#nfc

Ian Kar:

During in-store transactions, Apple will be passing the cryptogram and token to merchants via NFC, and Apple will be paying a “card present” rate in NFC purchases, Lambert confirmed to Bank Innovation. However, when using Bluetooth Low Energy (BLE), presumably how the iPhone 5 and 5S will do payments, or when making an in-app purchase using Apple Pay, the transaction fee will be the equivalent to a “card-not-present” rate.

Interesting tidbit. And it again points to why Apple is using NFC here instead of just doing it over Bluetooth LE, which they had already been using for a while.

Ben Basche:

It also dawned on me what the point of the iWatch might actually be. If the iPhone 6 is technically the “first” iDevice with NFC, might iWatch be the cheaper NFC wallet option during the transition to NFC in the iPhone install base? Apple’s crude attempt at backwards compatibility? Perhaps with an old iPhone paired to an iWatch, you too can lose the plastic for iWallet.

Perhaps the greatest trick the devil ever pulled was convincing the world that the “iWatch” was just some digital watch…

Ian Kar:

According to Noyes, while banks control the card-present/not-present rates,  the networks negotiate the rates with payments processors. The differences can be dramatic. Apple was apparently adamant about getting the card-present rates and told issuers that it would assume some of the fraud risk inherent in every transaction by providing a secure element via biometric authentication (its TouchID feature) and location data provided through an NFC chip. The Apple payments platform will work with all of their cards.

Banks offered the discounted fee for two reasons: for the Apple payments platform to accept all of the cards from the issuers, and for Apple to assume some of the liability by including two secure elements that will authenticate transactions — location data via the NFC chip, and biometric security. This is essentially a wash for the financial services industry: they lowered fees for Apple for the privilege of being included in Apple’s payments initiative, but managed to put some of the transaction risk to Apple.

If all of this is true, it’s potentially massive. And it may speak to why Apple may have finally greenlit the use of NFC technology in their products, even though they could have presumably done everything they wanted with the already-implemented Bluetooth LE tech.

Christina Bonnington:

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.

After 6 years of false positives, it appears that NFC may actually stand for more than “No Fucking Chance” with the iPhone 6. We’ll know soon enough!

Kelly Hodgkins:

According to Morgan Stanley, Apple is choosing NFC as the key technology for its mobile payments system, with semiconductor company NXP likely providing the necessary wireless hardware. NXP has an existing relationship with Apple, supplying the M7 motion-sensing chip found in the iPhone 5s.

Is this the fifth straight or six straight year that Apple has been said to be including NFC in the forthcoming iPhone? I’ve lost count. Doesn’t mean it won’t happen eventually, but it’s especially hard to take this seriously. Also, Apple is clearly wed to Bluetooth LE. Do they want another chip in the ever-slimming and power-efficient phone?

Long story short: Google wanted to put Google Wallet on the Galaxy Nexus — the “clean install” Android that everyone loves so much — and Verizon said “no”.

Guess who wins here? Well, the software will not be available to Verizon Galaxy Nexus users.

Verizon issues a release saying they’re not blocking it — which is likely the biggest load of bullshit ever. No, they’re not blocking it specifically, they just won’t let Google release the Galaxy Nexus if it’s anywhere to be found on the device. Nor can users download it after the fact. Why? Some hardware claim that seems to be a flat-out lie. 

Long story shorter: you get in bed with the devil, the devil fucks you.

Long story shortest: “open”. 

While NFC has been the talk of the town in terms of mobile payments, Square has quietly worked around it one way, and Apple just did it another way.

The most interesting thing about this test though is the real big picture. It’s a reminder that Apple has hundreds of millions our credit cards in their iTunes system which is now connected to every iPhone. When you add these two things together in the real world, guess what it equals?

Apple making a shit ton of money.