Apple Mobile Payment System 'Transaction' - an iPhone-based eWallet

[MacRumors]

Patently Apple details a recent Apple patent application that describes a system by which customers can use their iPhone as an electronic wallet and payment system.

Apple's patent is directed to various techniques for conducting peer-to-peer financial exchanges using a handheld, portable electronic device – which for the sake of simplicity is represented throughout several transaction-based patents - as the iPhone.

The iPhone may integrate several functionalities for performing peer-to-peer transactions, including the storing information representation a user's payment accounts and crediting accounts, acquiring and sending payment information, and obtaining payment authorization.

Apple suggests a number of possibilities on how to initiate transactions including the use of Near Field Communication (NFC) technology.

Apple even names the app "Transaction" in the patent application and details how it might be used. This flowchart shows how one might pay for a bill at a restaurant using the application:

The patent applications for this system were originally filed in late 2008.

Article Link: Apple Mobile Payment System 'Transaction' - an iPhone-based eWallet

 

[Darkroom]

"would you like to buy this $2,000 item?'
> YES
"transaction in progress..."
"10% battery power remaini... "

*dead*

 

[RonHC]

Meanwhile, thousands of miles away...

 

[lincolntran]

alpha and omega?

Does apple plan to use the iPhone as a "be all, end all" device?

 

[Pumpkin King]

Now I'll really freak out when I lose my phone. Free pass to my bank account everybody.

However, put in some type of security to verify it's me (heartbeat monitor patent perhaps?) and I'm all in.

 

[SkippyThorson]

"would you like to buy this $2,000 item?'
> YES
"transaction in progress..."
"10% battery power remaini... "

*dead*

I truly lol'ed. I can just imagine that happening.

 

[Elise]

It was only a matter of time...

 

[RalfTheDog]

Does apple plan to use the iPhone as a "be all, end all" device?

Yes.

Posted from my iPad.

...

 

[iWonderwhy]

Looks like Arn is busy today.

 

[cvaldes]

It was only a matter of time...

You mean, it's about time.

The Japanese have had this for years.

 

[jdechko]

Funny, I was listening to last week's MacBreak Weekly (5/4/10) podcast today and they were talking about this very thing.

 

[RafMac]

Isn't Apple Store already using this system with their iPhones as I bought an item there and she pulled out an iphone from her pocket that had a card reader attached to the back of the iPhone. Scanned my CC and paid, invoice sent by email.

 

[Jaro65]

I really look forward to this. As noted above, Japanese have been using their cellphones for electronic payments for some time now. While I look forward to replacing my wallet with the iPhone, there will need to be some biometric measures to ensure that I (and only I) can authorize the transactions.

 

[Somtaaw]

Isn't Apple Store already using this system with their iPhones as I bought an item there and she pulled out an iphone from her pocket that had a card reader attached to the back of the iPhone. Scanned my CC and paid, invoice sent by email.

The Apple Store uses iPod Touches to ring people up for their purchases. What this patent is proposing is that you can use your own personal iPhone/iPod Touch to pay for something.

 

[Hurda]

Does apple plan to use the iPhone as a "be all, end all" device?

Not until it has a built-in tricorder.

 

[redkamel]

Isn't Apple Store already using this system with their iPhones as I bought an item there and she pulled out an iphone from her pocket that had a card reader attached to the back of the iPhone. Scanned my CC and paid, invoice sent by email.

This doesnt use a card reader, I believe its just straight bank to vendor via iphone authorization. Even the Square payment system requires a card reader.

 

[Robbadore64]

And I'll still be stuck behind the sweet old lady in line at the grocery store writing a check

(no offense to the elderly)

 

[jessea]

It'll be nice to stop carrying around such a bulky wallet. I already love ditching simple things like membership cards with the iPhone. Ditching the plastic will be fine with me.

 

[spaz8]

Yeah, now someone can rob me by scanning my pocket.

 

[mchoffa]

iPay?

 

[avigalante]

iPay?

I don't think so.

iPay Technologies is a company involved in the payment processing business. They were recently acquired, but will still do business under that name.

 

[Tilpots]

I'm wondering if this connects straight to your CC holder, the vendor, or what. The business will need to be assured that they have been credited, so hopefully it will take no longer than the CC machines already in use. You pay, they confirm receipt of the money and you go on your way. I like it.

Bio-metric would be excellent, but it's not a deal breaker for me. 90% of the places I use a credit card never even bother to look at my ID. Even with a Debit Card, it's only a 4 digit password. I'd imagine the Find my Phone feature would be used a lot less because people might take care not to leave their device behind in say, a German beer garden.

 

[bassjunky]

This sounds great. I was just bitching on another forum that I hate writing and depositing checks. There are only a few occasions when a check is necessary, but maybe an app like this could be used for those occasions (childcare, school fund raisers, other odd things...)

 

[aaustin22]

Just an observation, but it seems that this 4th generation iPhone is easily lost or forgotten about or maybe they literally grow legs and walk away. Regardless, if the people who are in charge of a prototype can't keep them on their person, that doesn't give me any faith that myself or anyone else won't lose their phone and, with that, won't lose all their bank and possibly credit card information with it. Not everyone has a MobileMe account and can use the Find My iPhone feature to kill it if/when it gets lost. Call me old fashioned, but I'm not 100% keen on something like this, on the up side, it definitely sounds like an optional feature.

 

[miamialley]

Japan has had this feature for years.

I always thought we (the US) were a little behind not having this ability.