Apple to equip iPad 2 and iPhone 5 with NFC chips

Tuesday, January 25, 2011 · By Ramin asadi

According to a report published by Bloomberg, Apple will be equipping iPad 2 and iPhone 5 with NFC chip with an intention to let its proud owners use iDevice as a debit cards.

NFC which stands for Near-Field Communication is a technology which is operable within a distance range of 4 inches and requires an NFC tag on the item with which the transaction is to be performed.

The main goal for Apple would be to get a piece of the $6.2 trillion Americans spend each year on goods and services, Crone said. Today, the company pays credit-card processing fees on every purchase from iTunes. By encouraging consumers to use cheaper methods — such as tapping their bank accounts directly, which is how many purchases are made via PayPal — Apple could cut its own costs and those of retailers selling Apple products.