iPay?

Rumors have circulated for years that Apple will turn the iPhone into a mobile payment device using RFID (Radio-frequency identification) technology. RFID-based payment services have already been used by the E-ZPass highway toll system and the ExxonMobil SpeedPass, but these require a dedicated device. This patent, filed in December of 2007 by Apple, outlines how RFID circuitry can be incorporated into the touch sensor panel circuitry on a device such as the iPhone. Apple also holds patents for payment services that include the terms iPay, iBuy, and iCoupons. As of today, this technology has not been used by Apple, but it seems possible that it will be incorporated in the iPhone 5, which many believe will be released this summer.

Last year, Apple hired near field communications expert Benjamin Vigier as project manager for mobile commerce which seems to further confirm Apple’s commitment to implementing an RFID payment scheme. Vigier has already developed a mobile device-based payment service for Starbucks at his last employer, mFoundry. This system, however, is based on a barcode display rather than RFID. Starbucks Card Mobile App is available for the iPhone, iPod touch, and iPad and allows you to pay for your coffee and scones at nearly 6,800 locations.

Here at Small Dog Electronics’ global headquarters we have a Keurig brewer, which is made by our friends from just up the road, Green Mountain Coffee. There are no plans to charge the employees for coffee at this point, but if that changes, I am hoping to be able to tap my iPhone against the machine to pay.

UPDATE: Apple has added fuel to the rumors that an RFID-based payment scheme is coming soon by posting three new job openings. The first is an engineering position in the iPhone department. The listing calls for “Good practical IR and RFID (ISO/IEC 14443) knowledge and experience.” The other job listings are for two global mobile payment platform managers. The job description includes the following requirement: “The individual in this role will contribute to the analysis and development of new payment types and processes for the various business units.”