Apple Plans To Link Smart Phones To Your Credit Cards

Verizon iPhone 4

Photo: Dan Frommer, Business Insider

A chip that links an iPhone to your bank account could break mobile commerce wide open in the U.S. Dan Lyons on Apple’s possible next category-killer.With the iPod, iTunes, iPhone, iPad, and iMac, Apple is the most powerful tech company in the world. It’s also the No. 1 music retailer in the U.S. and among the top sellers of online movies, too.

What can it possibly do to top this? It might become an iBank.

That could happen thanks to a technology that lets you use your mobile phone to pay for stuff in brick-and-mortar stores, not just online. The technology, called near-field communication, involves a microchip that can send and receive data across very short distances, about four inches. Instead of swiping a credit card, you hold your phone near a reader and let the data zip between the two devices.

Read the full post at The Daily Beast →

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