iPhone 5 might be your next wallet

Apple of course is developing the next iPhone, and according to reports from CultofMac today, the next iPhone (nicknamed iPhone 5) will be able to make instant payments electrically, through your phone.

The technology behind this, called Near Field Communication, or NFC for short, is a short-range wireless communication technology that could turn the iPhone into a digital wallet. Apple has reportedly been hiring NFC experts and technicians in preparation for the iPhone 5.

Asia already widely supports mobile phone payments, more specifically in South Korea and Japan, where you can make payments for subway fare or vending machine purchases using your mobile phone.

If this wasn't solid enough evidence, Apple and Google are currently in a bidding war to buy start-up company Boku, according to TechCrunch. Boku is a mobile payment company that allows electronic fund transfer between two devices.

Both Google and Apple are still in early discussions with Boku, which means both companies are looking for a new competitive edge on one another to help push devices. If Apple does use some of its $50 billion cash to acquire Boku, we could see a new iPhone with digital payments in June of next year, and possibly all of the Apple stores around the U.S. supporting payments through your iPhone.

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How it works in Japan (and other parts of Asia):
Sensors are built into the subway systems (and a few other places around Japan and some other parts of Asia).
The cell phone comes built with NFC already in it (once again, they have been using this system for say 5-10 years now).
You hover the back of the cell phone over the sensor to the subway system (same area where we put in our tickets now so we can get in/out of the subway area).
The cell phone sends data to the sensor via NFC; the sensor reacts to it and credits the phone company the small sum of the ticket.
The gates open and you move on with your life.

THIS IS IN NO MANNER OF SPEAKING A REPLACEMENT FOR YOUR WALLET. Personally I don't know why Andrew even placed that as the topic since it is REALLY misleading and already has started hate towards it because of the misleading title. No one would want to charge their phone company for large sums of money nor put their credit card on their phone. Not even Japan has done that kind of stuff yet, and for good reason.

My first thought was that it would be nice if I could use it as an oyster card too.
My second thought was that the cards are so thin I don't really care enough.

Let me put it this way, NFC can be (even if encrypted) intercepted a lot easier than sticking a card into a device can (no physical tampering required).

How secure do you really think this will be if implemented by Apple, as another commenter above posted after the shenanigans with the Lock Screen?

Yes I agree, your wallet can be stolen, your phone can be stolen, there isn't much difference in security or convenience there, the security falls down when one requires a physical device to skim/read the ard where are data transferred through the void will always be susceptible to sniffing devices within the vacinity.

^ Please feel free to flame the above, am only half awake and don't really care

the next iPhone (nicknamed iPhone 5) will be able to make instant payments

I like this idea but I'd rather see it on a small plastic card rather than a phone. You know, something I can carry in my pocket and provide to ANY retailer, vending machine, parking meter, or merchant over the phone or Internet to make instant payments. I want it to come with 0 liability for fraudulent use. I want it protected with a 4-digit code or "PIN" to protect it if its stolen. And I don't want it to rely on a battery or mobile network so that I can use it anytime, anywhere.

I believe this may already exist somewhere actually.

Now if Apple can somehow improve upon that concept I'd love to hear it.

C_Guy said,
the next iPhone (nicknamed iPhone 5) will be able to make instant payments

I like this idea but I'd rather see it on a small plastic card rather than a phone. You know, something I can carry in my pocket and provide to ANY retailer, vending machine, parking meter, or merchant over the phone or Internet to make instant payments. I want it to come with 0 liability for fraudulent use. I want it protected with a 4-digit code or "PIN" to protect it if its stolen. And I don't want it to rely on a battery or mobile network so that I can use it anytime, anywhere.

I believe this may already exist somewhere actually.

Now if Apple can somehow improve upon that concept I'd love to hear it.

Anywhere credit cards are excepted, they can manually enter your card number. As long as the card number can be brought up on the phone somehow, shouldn't be an issue. The battery part will be an issue though I can't remember the last time my iPhone or my Nexus died on me. Traveling might be an issue though at some point you have to stop to sleep which means plug your phone in the wall in the hotel. As long as they don't get rid of the pin/signature requirement then you really don't have to worry about liability.

I've been wanting this from a phone for AGES.

Currently, I have a phone, media player and wallet in my pocket. I've already been able to remove my camera, due to my phone having an awesome built-in camera; soon, I'd also like to be able to remove my wallet and media player, in place of my phone (currently, most Windows Phones don't have the storage capabilities to replace my media player). I'd also like to be able to use my phone as ID/driving license (instead of having to carry around a driving license).

I've been thinking about this for so long and how annoying it is that my pockets are constantly so full.

stablemist said,
I don't like the idea. What if Apple takes some of the money you put on your iphone?

They wouldn't be able to do that without advertising the fact they do that...

well I can tell you for sure, my wallet has been through water, sand, mud and dropped many times and all my cards and bills still work fine. will an iphone 5 match that? :-p

wv@gt said,
well I can tell you for sure, my wallet has been through water, sand, mud and dropped many times and all my cards and bills still work fine. will an iphone 5 match that? :-p

There's more, your wallet can buy non-kiddie magazine and Adobe products.

martheen said,

There's more, your wallet can buy non-kiddie magazine and Adobe products.

Amazing how many people failed to realize that the non-kiddie magazines were available on the web browser long before they were apps. get some new material... seriously

The iWallet eh?
And can anyone steal your money with a ### & lock button?

I'd be wary of putting my money onto a device like that...

This would be no less secure then sending the same stuff through wires, which is what happens now. It would be encrypted.

So I'm really the only one who likes the idea?

I am sure someone out there would easily find a way to intercept the transaction and access peoples bank accounts. The last thing i want is to use my phone for money transactions.

It'd be encrypted though so intercepting the message would be about as useful as accessing data over a wireless network. There could be potential flaws but the actual interception of a transaction probably isn't it, you'd need something else to then decrypt that.

Ruran said,
I am sure someone out there would easily find a way to intercept the transaction and access peoples bank accounts. The last thing i want is to use my phone for money transactions.

There is wireless eftPOS machines (Taxi's use them). What difference would it be on your phone?

when i first read the headline i thought there was going to be a pouch on the back of it to hold your credit cards... probably would be a better idea

Lachlan said,
when i first read the headline i thought there was going to be a pouch on the back of it to hold your credit cards... probably would be a better idea

Ahahah. My thoughts exactly.

Lachlan said,
when i first read the headline i thought there was going to be a pouch on the back of it to hold your credit cards... probably would be a better idea

LMAO! Yeah... I dunno. I'm not in support of something like this honestly.

This is no novelty. In Brazil, the ISP Oi has had this for a couple of years and you can do that in any phone. And whatever you pay with your cellphone comes in your monthly bill (or is discounted from your credit if you have a pre-paid phone).

sviola said,
This is no novelty. In Brazil, the ISP Oi has had this for a couple of years and you can do that in any phone. And whatever you pay with your cellphone comes in your monthly bill (or is discounted from your credit if you have a pre-paid phone).

who said it was a novelty? it is for the iPhone though.

sviola said,
This is no novelty. In Brazil, the ISP Oi has had this for a couple of years and you can do that in any phone. And whatever you pay with your cellphone comes in your monthly bill (or is discounted from your credit if you have a pre-paid phone).

Japanese phones have had this feature for ages too. I never use it though.

tsupersonic said,
No thank you to whatever platform does that. I do not want my wallet on a phone, where info. can easily be stolen.

+1

tsupersonic said,
No thank you to whatever platform does that. I do not want my wallet on a phone, where info. can easily be stolen.

I still don't have an opinion about this but... You still need a PIN number I believe... so how is that less secure than having a card on you?

PsykX said,

I still don't have an opinion about this but... You still need a PIN number I believe... so how is that less secure than having a card on you?

...or more convenient?

M_Lyons10 said,

...or more convenient?

Was just about to say that. If you still have to do everything like a card, why not continue to use the card?

Though I suppose you would be able to have multiple cards on the same phone, but also I would think you wouldn't need to take it out of your pocket.

tsupersonic said,
No thank you to whatever platform does that. I do not want my wallet on a phone, where info. can easily be stolen.

Your wallet can't be stolen?

Mr aldo said,
Was just about to say that. If you still have to do everything like a card, why not continue to use the card?

Though I suppose you would be able to have multiple cards on the same phone, but also I would think you wouldn't need to take it out of your pocket.

Multiple cards and not taking phone out of pocket would be nice.