How the Next iPhone Could Finally Kill the Credit Card

[brachism]

16. Sounds great, but

But if, as predicted, the next-generation iPhone includes a chip that makes the device scannable at checkout counters, Apple could catalyze a transformation in how money moves that is at least as substantial as the improvements in how data moves that Cupertino forced upon the telecom industry. At first, an iPhone wallet likely would act as a surrogate for credit cards, a way to store the data of multiple cards but using the phone as the way to transfer that data instead of a swipe. But over time, the point of holding onto any of those cards, which become digital abstractions once they’re on the phone, likely will fall away. Instead, for all anyone with an iPhone is concerned, the way to pay will be Apple.

I’ve heard a number of people talking about this as if it was some new cutting-edge revolutionary technology that Apple is pioneering and that it will change all our lives.

Near Field Communications (NFC) has been incorporated in a number of devices including Samsung’s Galaxy line since 2011. This includes the S5 (April 2014), S4 (March 2013), S3 (May 2012), S2 (December 2011) and the Galaxy Nexus (October 2011.)

There are many reasons why this hasn't become the de-facto standard method of payment. I'm not a phone-geek, but as I recall Apple didn't want to support NFC, the wireless technology most linked with mobile payment. Insteads they pursued developing their own solution around things like iBeacon. As I see it Apple is late to the game in this area. That said, the inclusion of NFC in their upcoming devices will certainly add momentum to move to mobile payments.