According to a report by The Information, Apple may launch its mobile payment service by this fall. Apple is in constant contact with companies in the payment industry to help launch a service that will enable payment for goods in retail stores through their mobiles.
Apple is in discussion with credit card company Visa for a partnership that would save more by bypassing third party payment processors. With credit card company partnership Apple plans to upload users’ banking information to the wallet.
The article reports about inclusion of a ‘secure element’ in the phone to store sensitive data. The secure solution may involve Apple A7 processor’s “Secure Enclave”. Secure Enclave is a coprocessor within the A7 chip that was designed for Touch ID. It uses a secure boot process to ensure that its separate software is both verified and signed by Apple. It functions independently and contains a unique ID that is inaccessible to other parts of the system, keeping all data safe.
Apple has told some partners its system would involve a so-called secured element in the phones—a piece of hardware where sensitive information such as a phone owner’s financial credentials can be stored. The company also aims to run the system without giving up any control to wireless carriers.
Recently a report from The Wall Street Journal also cited Apple working on a new mobile payment service that would allow iOS devices to make purchases for physical goods in Apps, web, and retail stores. In June, there was a report that suggested Apple’s plans to tie up with PayPal for mobile payments.
The mobile payment solution would be built around iTunes, which already has more than 800 Million iTunes accounts, most with their credit cards linked. It is also very likely that the payment service would be tied with fingerprint scanning Touch ID to allow seamless purchasing.
The Information also reported that Apple may rely on short-range Bluetooth and Wi-Fi service to enable the transfer, rather than NFC.
(Via 9To5 Mac and MacRumours)