Your Preview of Apple’s NFC Launch: Yes to SE, No to HCE, Tag Reading Unlikely

NFC Times Exclusive: Apple’s scheduled announcement Tuesday of its next iPhone is expected to make it the last and also the most prominent of the major smartphone makers to adopt NFC.

And that adoption could represent the biggest stimulus to date for the much-anticipated but long unfilled promise of mobile payments rollouts in the U.S. and beyond. 

Following is a preview of what we can expect from Apple’s bold move into the NFC ecosystem, based on credible NFC Times’ sources. 

Among the key points: 

The iPhone 6 will support an embedded secure element to store payment credentials but is not expected to support tag reading. 

Apple has deals with major payments schemes and issuers in the U.S., which will give the planned payments service card-present transaction rates for merchants. And a source said Apple would earn a cut of interchange or transaction fees in the U.S. 

Meanwhile, rollouts are also planned in China and Europe. 

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1,500 

Among Topics Covered:

  • Overview of Apple’s plans for NFC in its next iPhone
  • Likely rollout timeframe of NFC payments in the iPhone 6 for the U.S., China and Europe
  • Amount of basis points Apple will take of interchange fees in deals with major U.S. issuers, according to a source.
  • Context of Apple’s NFC payments launch in China
  • Likely architecture Apple will use for payments for its iPhone and smartwatch and involvement of iTunes
  • Prospects for Apple as "TSM" and how personalization of the mobile card might be done.
  • Why Apple will not support HCE in the iPhone 6
  • Reasons Apple is expected to shun tag reading in its forthcoming smartphone 

Among companies and organizations mentioned:

Apple
Visa
MasterCard Worldwide
American Express
China UnionPay
Bank of America
Citi
JPMorgan Chase
Capital One
NXP Semiconductors
Sony
HTC
ZTE 

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