Apple Misses Huge On Mobile Payment By Omitting NFC Chip?

Bad news for online casinos in United Kingdom: the new iPhone 5 does not have an NFC chip.

Sanjay Sakhrani, an industry analyst at Keefe, Bruyette & Woods commented: "Anyone hoping NFC would be a reality soon is disappointed. Many in the industry were hoping inclusion in the iPhone would be a springboard for more adoption. This takes the impetus away."

However, some analysts think NFC will eventually replace the plastic card, and by skipping this technology, Apple may have missed a valuable opportunity.

The introduction of NFC chips to a wide range of smartphones can be a key factor how customers will be able to place a bet on sports in UK or play in an online casino. With the NFC chip present in your phone, you could simply use your credit card (that also has an NFC chip) for your payments. Simply put, your phone becomes a card reader.

The prospects are huge, as British gambling laws allow placing real-money bets in online casinos run on mobile devices. The regulation does allow the use of NFC chips yet for such transactions.

Near field communication (NFC) is a technology that establishes radio communication between two objects touching them together or bringing them into close proximity (a few inches). It is used to handle transactions and data exchange.

The most important role of NFC is to simplify money transactions. It is typically used to pay small sums such as parking fees, bus or train tickets or items bought at the newsagents’. It basically replaces cash. The NFC transactions are much faster than standard credit or debit card transactions.

To enable NFC payments, the payer has to have a device that has an NFC chip in it. Some loyalty cars and credit cards already in circulation have this chip. Google’s Nexus S has it, as well as some Nokia or Samsung smartphones. Who knows, maybe the next iPhone will…