Here's Why You Can't Make Wireless Payments With The iPhone 5

Phil SchillerApple SVP Phil Schiller

After much speculation back and forth, the official word is that the iPhone 5 will not have near-field communication or NFC, a wireless technology used for payments and short-rangedata transmission.Phil Schiller, Apple’s SVP, told AllThingsD’s Ina Fried the reasoning in one simple sentence:

“Passbook does the kinds of things customers need today.”

Apple’s Passbook software, built into new iPhones, lets users store tickets, gift cards, boarding passes, and the like.

In this sense, it handles most of the tasks one might want in an NFC-powered electronic wallet—without the need for new, special hardware.

Google initially built its Google Wallet mobile-payment system around NFC, a technology found in some Android smartphones. It’s since regeared Google Wallet so it depends less on NFC.

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