How Apple Will Likely Implement NFC Mobile Payments; Hint: TSMs Need Not Apply

UPDATED: There’s little doubt now that Apple will support NFC and mobile payments in its next iPhone. The remaining question is exactly how it will do so.

Of course, we won’t know for sure how Apple plans to jump into physical-world payments until it unveils the new iPhone on Sept. 9, and Apple might not reveal many of the details then. 

But some sources have sketched out for NFC Times what they believe the implementation will probably look like. 

It’s a fairly sure bet that Apple will not be adopting a striclty conventional approach to implementing NFC payments, even if it does use an embedded secure element. And a source has told NFC Times that Apple might act as its own TSM.

But unlike much of the speculation in this and previous years, Apple will not avoid working with banks, and is believed to have cut deals with major U.S. issuers. 

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Among Topics Covered:

  • Likely architecture for Apple’s planned implementation of NFC mobile payments
  • Deals with payment networks and banks
  • Possible proxy cards and preloaded applets
  • Avoiding the trusted service manager
  • Use of the embedded chip
  • Why Apple is not expected to launch with HCE
  • Open-access model for embedded chips in non-iPhone devices
  • IPhone as connectivity hub, though tag reading unlikely for this iPhone

Among companies and organizations mentioned:

Apple
Visa
MasterCard Worldwide
American Express
China UnionPay
Bank of America  
NXP Semiconductors
Google
PayPal

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