Apple gives approval stamp technology popular NFC chip
Awaited launch of Apple Inc. in the-tap-to-pay technology in their new iPhones and SmartWatch can be the seal of approval from the technology of near field communication has become as common as WiFi, Bluetooth and GPS.
NFC allows smartphones Called communicate wirelessly with other devices such as POS terminals by keeping them together. While advocates have argued for years that is ideal for secure payment systems that could eventually replace credit cards, none have been so successful.
In a gala event on Tuesday, try Apple CEO Tim Cook Apple uncorked mobile payment, call Apple paid using NFC chips built into two new iPhones of the company and Apple Watch.
NXP Semiconductors NV dominates the market for NFC chips with Broadcom Corp greatly thing. Chip makers including Qualcomm, MediaTek Inc. and Marvell Technology Group Ltd have their own offers NFC and have the opportunity to participate more market share if Apple causes an explosion in mobile payments.
Samsung, Motorola and other manufacturers already include the NFC technology in many Android smartphones, and some forays mobile payment has been made in Asia. But with the major payment systems like Google Wallet does not catch on, technology has kept away from the norm in phones.
Now the adoption of NFC Apple trends seem likely to provide the technology needed regarding long you need.
"Apple does not support that always attracts some to question its viability," said James Anderson, vice president of mobile and emerging payments for MasterCard, which supports pay Apple. "All these problems are gone now. Hopefully NFC will be the predominant technology for payments at the point of sale between a smart device and a terminal merchant."
Builders NFC chips in about 300 million smartphones last year, equivalent to about a third of all smartphones shipped. The number of NFC phones this year is expected to continue to grow and reach about 550 million units, aided by Apple devices and a growing number of Android gadgets Gartner analyst Mark Hung believes.
As mobile, NFC technology is being built at the point of sale devices, video game consoles and medical tools. It is expected that NFC chip shipments to reach 1.64 billion units in 2018, according to research firm IHS iSuppli market.
NXP shares rose 16 percent last month, investors are betting chips Dutch company would be used by Apple. NXP, which declined to comment, as coprocessors provides sensors for the iPhone.
Sales of NFC chips and related security for the iPhone could mean an additional $ 230 million in revenue next year NXP, Pacific Crest analyst John Vinh.
NEED CHIPS to protect data
Using NFC technology for mobile payments also opens the door to sell more chips "secure element" used to protect the essential identifying information, such as account numbers.
"For there to be a solution of full payment, must be not only radio but also a secure NFC chip, which obviously increases the chance Content dollars for chipmakers as NXP, but also provides more robust and secure solutions for mobile payments industry, "Vinh said.
Chipmakers STMicroelectronics and Infineon Technologies has a strong presence in the components of the security and scalability have lots of technology must take off, says IHS iSuppli analyst Don Tait.
NXP had a 59 percent market share of the NFC chips last year, but his rivals are increasing their own offers. Broadcom has a third of the market and integrate NFC features on chips "combo" and packed with WiFi, Bluetooth and GPS.
Qualcomm, the first chip maker in the world, has come late to the game, but last year launched its first NFC chip as smaller competitors.
"Today's news is a welcome indication that the NFC is the realization of their potential," said David Favreau, vice president of product management at Qualcomm. "We have seen the growth of NFC technology in other geographical areas and expect to become a standard for mobile devices."