11 Clues to Apples Plan for Payments

Published May 30, 2014 12:56 PM

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Updated October 20, 2016 10:05 AM

1 Min Read

Tim Cook, chief executive officer at Apple Inc., speaks during the keynote of the World Wide Developers Conference (WWDC) in San Francisco, California, U.S., on Monday, June 10, 2013. Apple Inc. introduced a new music-streaming service along with sweeping changes to the software powering iPhones and iPads, seeking to blunt the advance of Google Inc.s Android mobile operating system. Photographer: David Paul Morris/Bloomberg *** Local Caption *** Tim Cook

David Paul Morris/Bloomberg

Apple has never built an iPhone capable of making Near Field Communication payments, but we know it has been studying the technology closely for years. With its Worldwide Developers Conference taking place this week, Apple may soon reveal what it's been working on. Pictured: Apple CEO Tim Cook (Image: Bloomberg News)

A smartphone sold as an Apple Inc. iPhone 4S, with its back cover removed, is arranged for a photograph in Hong Kong, China, on Saturday, Jan. 11, 2014. Apple Inc.'s iOS smartphone operating system gained ground in the U.S. in the final quarter of 2013 as the share of the market served by the platforms of Google Inc., Microsoft Corp. and BlackBerry Ltd. shrank. Photographer: Brent Lewin/Bloomberg

Brent Lewin/Bloomberg

Antenna Tech

A recently published patent shows that Apple doesn't want another "Antennagate" scandal when it comes to NFC. The company designed an NFC antenna that can enable payments regardless of how the phone is held. (Image: Bloomberg News)

The new Apple Inc. iPhone 5C sit on display during a product announcement in Cupertino, California, U.S., on Tuesday, Sept. 10, 2013. Apple Inc. announced two new iPhones including one with lower prices and more color options, in a strategy shift by Cook to reach a broader range of customers around the world. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

Retailer Outreach

Apple has also reportedly been talking to other retailers about what it would take to have a new payment system in their stores. (Image: Bloomberg News)

Shoppers stand in line outside an Apple Inc. store in Chicago, Illinois, U.S., on Friday, Nov. 2, 2012. Apple Inc.'s iPad Mini tablet, which boasts a 7.9-inch screen diagonally, goes on sale in the U.S. today. Photographer: Daniel Acker/Bloomberg

Daniel Acker/Bloomberg

Lining Up the Right Technology

The foundation for NFC payments is already being established in Apple stores, which are using devices from VeriFone to accept NFC payments as well as chip-and-PIN cards. (Image: Bloomberg News)

The China UnionPay Data Co. logo is displayed on an automated teller machine (ATM) in Beijing, China, on Thursday, Sept. 16, 2010. The U.S. filed two complaints against China at the World Trade Organization, concerned that curbs on payment-processing companies put payment-processing companies such as MasterCard Inc. and Visa Inc. at a disadvantage because China favors a monopoly provider, China UnionPay Data Co. The second complaint is over dumping duties on more than $200 million of U.S.-made steel products. Photographer: Nelson Ching/Bloomberg

Nelson Ching/Bloomberg

China UnionPay

The most detailed Apple payments rumor is its reported plan to launch an NFC-based mobile wallet with China UnionPay. Such a product would require Apple to put NFC technology into its phones. (Image: Bloomberg News)

Timing Is Everything

Apple's most popular payments device may not even be a phone. The company is reportedly building NFC into its long-rumored iWatch. (Image: ShutterStock)

The new Apple Inc. iPhone 5 is displayed for a photograph during an event in San Francisco, California, U.S., on Wednesday, Sept. 12, 2012. Apple Inc. unveiled the iPhone 5 in an overhaul aimed at widening its lead over Samsung Electronics Co. and Google Inc. in the $219.1 billion smartphone market. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

Mixed Signals

An Apple patent published in January mixes NFC technology with other wireless standards that have a longer range. Under this process, an NFC signal would be used to initiate a payment, and any further communication would be handled through WiFi or Bluetooth. (Image: Bloomberg News) (Image: Bloomberg News)

New Apple Inc. iPod models, including the Shuffle, top, Nano, middle, and Touch, sit on display during an Apple product unveiling event in San Francisco, California, U.S., on Wednesday, Sept. 1, 2010. Apple, building on its dominance in the music industry, introduced new iPods, added a social networking feature to its iTunes software, and unveiled a new Apple TV set-top box that offers television and movie rentals. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

Heaps of Card Accounts

Apple CEO Tim Cook not-so-subtly let the world know in April that his company has enough payments data to be a true contender. "We now have almost 800 million iTunes accounts, most of these with credit cards," Cook said during an earnings call. (Image: Bloomberg News)

A smartphone sold as an Apple Inc. iPhone 4S, with its back cover removed, is arranged next to the company's logo for a photograph in Hong Kong, China, on Saturday, Jan. 11, 2014. Apple Inc.'s iOS smartphone operating system gained ground in the U.S. in the final quarter of 2013 as the share of the market served by the platforms of Google Inc., Microsoft Corp. and BlackBerry Ltd. shrank. Photographer: Brent Lewin/Bloomberg

Brent Lewin/Bloomberg

iTuned In

An Apple patent from 2012 reveals Apple's plans to link its hoard of iTunes data to an NFC payment system. The patent describes a process for card companies to send account information directly to iTunes, and enables access from multiple users for business scenarios. (Image: Bloomberg News)

The Apple Inc. logo is seen in the window of a store in New York, U.S., on Thursday, Jan. 23, 2014. Billionaire investor Carl Icahn said he increased his stake in Apple Inc. by another $500 million, bringing his total holdings in the iPhone maker to about $3.6 billion as he reiterated calls for a bigger stock buyback. Photographer: Ron Antonelli/Bloomberg

Ron Antonelli/Bloomberg

iTravel

Another 2012 patent covers iTravel, a service for using NFC to buy airline tickets, check in, check luggage and board a plane. (Image: Bloomberg News)

An Apple Inc. employee, left, gestures towards an iPad 2 during the opening of the company's new store in Le Chesnay, near Paris, France, on Saturday, Sept. 24, 2011. Apple Inc. is cutting orders to vendors in the supply chain for its iPad tablet computer, a move that may result in slower sales for companies including Hon Hai Precision Industry Co., JPMorgan Chase & Co. said in a report. Photographer: Fabrice Dimier/Bloomberg

Fabrice Dimier/Bloomberg

Hiring Spree

Apple has been hiring payments experts for newly created positions within the company, according to multiple reports. Its payments initiative is headed by Jennifer Bailey, a longtime vice president of the company's online stores, The Wall Street Journal says. (Image: Bloomberg News)

Tim Cook, chief executive officer of Apple Inc., speaks about new features of the iCloud service during an event at the company's headquarters in Cupertino, California, U.S., on Tuesday, Oct. 4, 2011. Apple Inc., in its first product unveiling since Steve Jobs resigned as chief executive officer, introduced a faster iPhone with voice features and a higher-resolution camera to help it vie with Google Inc.'s Android. Photographer: David Paul Morris/Bloomberg *** Local Caption *** Tim Cook

David Paul Morris/Bloomberg

iCloudy Forecast

Apple last year unveiled iCloud Keychain, a cloud-based system for storing encrypted passwords and payments information. This product never evolved into a true "iWallet," but it could serve as the foundation for a secure mobile payment system. Pictured: Apple CEO Tim Cook (Image: Bloomberg News)

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