Speculation that Apple is investing in the NFC
payments capabilities has been reignited by the company’s recent
acquisition of the security firm Authen Tec.
Authen Tec produces encryption technology
based on biometric authentication, including fingerprint, iris
scanners, and voice verification systems.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
According to some analysts, the acquisition
represents a step closer to the launch of NFC payment technology on
iPhones.
“It is another building block, it fits
right in,” Georg Fasching, director of the consultancy ModPay, told
Electronic Payments International.
In June 2012, Apple launched a new iPhone app,
Passbook, which enables users to hold virtual tickets, vouchers,
and boarding passes.
“They already have over 400 million
iTunes accounts with active linked credit cards,” said Fasching.
“Through their iTunes gift cards they also have the proven ability
to host and manage stored value accounts.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAnother element to consider according
to Fasching, is that in December 2011 Authen Tec itself
acquired PeerSec Networks, which specialises in secure
mobile-to-mobile networking technology, which allows wired and
wireless systems to communicate among each others, and could be
used for phone-to-phone or phone-to-business transactions.
“What was missing before was a security
solution strong enough to undertake payments. Now they have it,
which suggests they are really close to introducing a payment
experience,” said Fasching.
However, other analysts are more wary.
Francesco Burelli, partner at the management consulting firm Value
Partners, said that Apple’s acquisition of AuthenTec
indicates that Apple is interested in authentication technology and
device security maintenance.
“This type of functionality could be used in
two fields, access control to content and payment authentication,”
he said.
“The technology would enable a number of
possible payment functionality options to be developed, from
increased security for iTunes payments, to the extension into a
wider-reaching mobile wallet, to a wider online and offline
merchant base.”
“While this has the theoretical potential to
make mobile payments from Apple’s devices more secure, we seriously
doubt that this will constitute an acceleration factor for the
development of a widespread mobile payments solution,” he
added.
Both the analysts agree that Apple does not
have time for it to happen with the iPhone5, the release of which
is scheduled for October 2012.
