Sidebar Sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

NFC-Equipped iPad Air 2 Sparks Speculation of Future Apple Pay Registers for Small Businesses [Updated]

MacRumors

MacRumors

macrumors bot
Original poster
Apr 12, 2001
63,706
31,129



Earlier this week, a teardown analysis of the iPad Air 2 by iFixit surprisingly revealed the presence of a near field communications (NFC) controller chip that is identical to the one inside the iPhone 6 and 6 Plus. Apple never advertised the Air 2 as having NFC, and the tablet doesn't support contactless Apple Pay payments, so the inclusion of this chip is somewhat puzzling.

In a new article, Gigaom examines the reasons why Apple might include but not activate this hardware in its tablet device, speculating that the chip may eventually serve to help small businesses process payments.

ipad_air_2_nfc.jpg
Portion of iPad Air 2 logic board showing NFC chip boxed in red (Source: iFixit)​

In this scenario, the iPad Air 2 would serve as a cash register, potentially using the onboard NFC chip to process wireless Apple Pay payments without any additional hardware. The iPad already is gaining traction with small retailers for use as a mobile register, often in conjunction with a credit card reader and processing service such as Square. But with Apple Pay rolling out as an NFC system for payments, Apple could be eventually be looking to help retailers accept such payments with its hardware.
The key to NFC in the iPad Air 2 is that it affords the possibility of becoming an Apple Pay cash register with no dongle needed. Conceivably, it could expand the number of outlets that take Apple Pay from around 40 to anyone selling stuff who owns the latest iPad. It brings Apple Pay out from the big box store and into farmers' markets and boutiques.
Click to expand...
Such a system would appear to complement rather than replace existing credit card implementations used by small businesses, as Apple Pay currently has only limited distribution through the iPhone 6 and 6 Plus and retailers would still need to accept traditional credit and debit cards. Businesses also still require credit card processing arrangements through either a bank or a separate payment service such as Square.

Apple Pay launched earlier this week with only a few hiccups in an otherwise smooth release. Early reports were favorable with most users noting that transactions were processed quickly and easily. Its biggest limitation is distribution, with only large chain launch partners officially accepting the payment service. But as Apple Pay evolves, it will be interesting to see whether the NFC-equipped iPad Air 2 and small businesses will play a bigger role in Apple's mobile payment plans.

Update: As pointed out by a number of readers, the lack of NFC antennas in the iPad Air 2 leaves it unclear how the iPad Air 2 could be used as payment receiver. Forum member GekkePrutser notes that the chip is likely included in the iPad because it houses the secure element where Apple Pay data is stored for the in-app payment feature that is supported on the new iPads.

Article Link: NFC-Equipped iPad Air 2 Sparks Speculation of Future Apple Pay Registers for Small Businesses [Updated]
 
Article Link
https://www.macrumors.com/2014/10/24/ipad-air-2-nfc-apple-pay/
jrswizzle

jrswizzle

macrumors 603
Aug 23, 2012
6,107
129
McKinney, TX
"It brings Apple Pay out from the big box store and into farmers' markets and boutiques."

Incredibly smart idea.....should be interesting to watch. Heck, those small farmers markets and boutiques that use iPads as their POS systems are more advanced than the big-box stores who's systems are still stuck in 1999.
 
M

Miabifilms

macrumors newbie
Feb 1, 2014
28
1
What's the harm in just turning it on for payments? People won't buy the iPhone 6?
 
Last edited:
bawbac

bawbac

macrumors 65816
Mar 2, 2012
1,232
48
Seattle, WA
jrswizzle said:
Incredibly smart idea.....should be interesting to watch. Heck, those small farmers markets and boutiques that use iPads as their POS systems are more advanced than the big-box stores who's systems are still stuck in 1999.
Click to expand...

Care to elaborate on your sensationalized post?
 
Corrode

Corrode

macrumors 65816
Dec 26, 2008
1,004
2,299
Calgary, AB
Wow, let's see if this disrupts Square's business and makes them regret selling to Apple (if that was in fact, more than a rumor). Could be cool as long as Apple keeps transaction fees low.
 
L

loanhighknight

macrumors member
Jun 24, 2013
56
156
Gotta wonder how Square feels about this. On the one hand, it's direct competition, but on the other hand, it's its only vector into the marketplace becoming a more attractive form of cash register...
 
sviato

sviato

macrumors 68020
Oct 27, 2010
2,428
381
HR 9038 A
What distribution limitations? It'll work with all terminals that accept regular PayPass. Only the stores that specifically disable :apple:Pay will reject the transactions.
 
57004

57004

Cancelled
Aug 18, 2005
1,022
341
I think that they included this chip not because of the NFC functionality but for the included Secure Element which safely stores the payment keys. This supports Apple's story that you can still use Apple Pay for online transactions, just not in person ones. Thus NFC is not needed but the secure element is.

It's much harder for a malicious app or hacker with hands-on access to the device to pry the keys from the secure element than it is from the normal flash memory, as it's tamper resistant. It's basically a smart card (similar to the "Chip&Pin" EMV chip in a normal payment card), it's also a bit like a TPM module in Windows laptops/tablets.

Also notice that while the iPad includes the NXP65V10 it does not include the iPhone 6's AS3923 NFC booster chip which Apple uses to interface with the antenna. Without this its strength will be too weak to actually use NFC unless there was a fairly large antenna somewhere (and there is no space for that on the casing as it would have to be behind a plastic cover).

So I don't agree with the conclusion in the Gigaom article. While I would have loved to see NFC in the Air 2, I don't think it has the actual NFC functionality and in my opinion that's not why the chip is there.

They could have gone for a Secure Element chip without NFC but it would probably have required making new drivers, which probably wasn't worth the hassle as these chips won't be very expensive to begin with.
 
Last edited:
JoEw

JoEw

macrumors 68000
Nov 29, 2009
1,583
1,291
urda said:
There wasn't any NFC antennas in the device from iFixit, but it's unusual to include a chip and not have plans for it. Perhaps it'll be an add on later?
Click to expand...

How would an antenna be added later?
 
iSee

iSee

macrumors 68040
Oct 25, 2004
3,539
272
Nonsense.

NFC by itself doesn't help small businesses at all. They'd still need a credit card reader, so there's no point. Maybe when the iPad Air 20 comes out decades from now, NFC might be all the hardware you need. I guess small businesses can store their old iPad Air 2's in a back room someplace and whip them out at that point. But I have a feeling there won't be many options for POS that will run on them in 2033.
 
keysofanxiety

keysofanxiety

macrumors G3
Nov 23, 2011
9,539
25,302
I admit I've been one of the Apple Pay bashers of late.

However if this is true, it would be an incredibly good idea, and I'll be happy to eat my words.
 
JoEw

JoEw

macrumors 68000
Nov 29, 2009
1,583
1,291
If true, I think this would help Apple pay adoption significantly for 500 dollars a business can accept NFC payments? Yes please.
 
B

brendu

Cancelled
Apr 23, 2009
2,472
2,703
The best explanation I have heard is that it is where the secure element for apple pay is housed which is why it is there but no antenna. If this is the case however, the iPad mini 3 will also have the chip. Has ifixit torn that one down yet?
 
itr81

itr81

macrumors regular
Jul 12, 2010
230
52
I know Square said they will be using the new chipped enable cc readers for next tranistion. I believe the CEO has said they will be adopting Apple Pay as well...my guess is it could req the iPad Air 2 w their cash register holder which probably will have NFC antenna built in.

I have a feeling Apple and Square failed talks ended in a partnership rather then a full on take over by Apple.
 
E

elvisimprsntr

macrumors 65816
Jul 17, 2013
1,031
1,534
Florida
is it possible the NXP 65V10 NFC chip also functions as the "Secure Element" which may be necessary to store the "Device Account Numbers" to facilitate in app ApplePay transactions and TouchID authentication?

http://www.nxp.com/techzones/nfc-zone/technology/secure-element.html

Secure element

As a wireless communications standard, NFC provides a convenient method for enabling two devices to connect to each other. But for applications such as contactless payment, user authentication or building access, additional security is needed.

For NFC this means adding a secure element – a specific integrated circuit for handling and storing secured data. The secure element typically features non-volatile memory, a security CPU and crypto coprocessor and features additional security measures to protect it against tampering and attacks.

With its long history in identification, NXP already has industry-leading solutions for smart cards with its SmartMX family of secure crypto-controllers. So it was a simple step to integrate this technology into our NFC controller ICs to provide interactions that are both convenient and secure.
Click to expand...
 
Last edited:
eiuro

eiuro

macrumors member
Feb 28, 2013
63
34
peteullo said:
For all the people complaining about Apple's decisions, this should prove something.
Click to expand...

Thank you. This is a multi multi billion dollar company they don't just make random decisions. I do trust their decisions for the most part they are not perfect but certainly better than most other companies.
 
J

Jet Black

macrumors newbie
Jul 26, 2010
26
1
There is also the possibility of opening NFC for use in things other than Apple Pay, something that I really hope to see
 
itr81

itr81

macrumors regular
Jul 12, 2010
230
52
iSee said:
Nonsense.

NFC by itself doesn't help small businesses at all. They'd still need a credit card reader, so there's no point. Maybe when the iPad Air 20 comes out decades from now, NFC might be all the hardware you need. I guess small businesses can store their old iPad Air 2's in a back room someplace and whip them out at that point. But I have a feeling there won't be many options for POS that will run on them in 2033.
Click to expand...


Thats why I think they got a partnership with Square..which probably won't announce anything until next year to not take away from early adoption of Apple Pay. I for one do not seeing it too far fetched.
 
eiuro

eiuro

macrumors member
Feb 28, 2013
63
34
:eek:
keysofanxiety said:
I admit I've been one of the Apple Pay bashers of late.

However if this is true, it would be an incredibly good idea, and I'll be happy to eat my words.
Click to expand...

Why are you bashing it? I see nothing wrong with it at all and i'm trying to find something that could go wrong but it seems to me that its by far the safest way to process transactions on the planet right now.
 
S

snowweasel

macrumors newbie
Mar 5, 2013
9
0
GekkePrutser said:
I think that they included this chip not because of the NFC functionality but for the Secure Element which safely stores the payment keys. This supports Apple's story that you can still use Apple Pay for online transactions, just not in person ones. Thus NFC is not needed but the secure element is.

It's much harder for a malicious app or hacker with hands-on access to the device to pry the keys from the secure element as it's tamper resistant.

Also notice that while the iPad includes the NXP65V10 it does not include the NFC booster chip which Apple uses to interface with the antenna.

So I don't agree with the conclusion in the article. While I would have loved to see NFC in the Air 2, I don't think it has the actual RFID functionality and it's not why the chip is there.
Click to expand...

I agree, this would explain why it's included in the iPad mini as well, which can also do online Apple pay transactions, but the iPhone 5s can't, despite having Touch ID. Apple Pay requires Touch ID (or other verification, per Apple watch) AND a secure element to store the credit card info & produce tokens. I think that is what this chip is there for.
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom