iPhone 5 to contain mobile payments technology

Apple, creator of the iPhone

Apple, creator of the iPhone

Even before the iPhone 4 has been made available to Verizon Wireless customers, rumours of the iPhone 5 are already swirling.

The iPhone 5 is rumoured to be due in production in May 2011 and will feature an innovative piece of technology, mobile payments.

The app is likened to using a debit card and will work with any retailers set up to accept iPhone 5 payments. The Smartphone will allow customers to purchase goods by connecting to chosen bank accounts.

Recently making International news, the iPhone made a successful transition from AT&T to Verizon Wireless. Customers will be able to start using iPhones on the VZW network next month.

iPhone creators, Apple, are rumoured to have equipt the new generation of iPhone and iPad with Near Field Communication (NFC) technology. This technology will allow customers to purchase items by swiping their handsets across a reader.

Tech analysts are predicting that the iPhone 5, due in June and the second version of the iPad, due next month, will both have NFC technology in-built.

NFC is the same technology used by Transport for London to power its Oyster Card system. 

The rise in use of NFC technology has lead to mass prediction of the mobile phone soon replacing the credit card. However, Fred Huet, managing partner Greenwich Consulting UK Ltd says that such a vision at the moment remains more of an aspiration than a definitive reality.

“At the moment there is a clear “land grab” going on in that space between operators, handset manufacturers, banks and card operators such as VISA”, said Huet.

 “Replacing cards with phones in the next five years as Telefonica mentioned is probably more aspiration than a definitive target”.

Will this new technology replace credit and debit cards?

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